KB Home (KBH) Beats Stock Market Upswing: What Investors Need to Know

The latest trading session saw KB Home (KBH) ending at $70.03, denoting a +1.82% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 1.03%. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, added 1.19%.

The the stock of homebuilder has risen by 2.11% in the past month, leading the Construction sector's loss of 3.66% and the S&P 500's loss of 1.57%.

Investors will be eagerly watching for the performance of KB Home in its upcoming earnings disclosure. In that report, analysts expect KB Home to post earnings of $1.79 per share. This would mark a year-over-year decline of 7.73%. Our most recent consensus estimate is calling for quarterly revenue of $1.64 billion, down 7.1% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $8.01 per share and a revenue of $6.77 billion, demonstrating changes of +13.94% and +5.55%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for KB Home. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.15% upward. KB Home presently features a Zacks Rank of #1 (Strong Buy).

In terms of valuation, KB Home is currently trading at a Forward P/E ratio of 8.59. This denotes a discount relative to the industry's average Forward P/E of 9.05.

We can additionally observe that KBH currently boasts a PEG ratio of 0.78. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Building Products - Home Builders industry stood at 0.81 at the close of the market yesterday.

The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 15, positioning it in the top 6% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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