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KB Home (KBH) in Focus: Stock Tumbles 8%

KB Home ( KBH ) saw a big move last session, as the company's shares fell by nearly 8% on the day. The move came on pretty good volume too with far more shares changing hands than in a normal session. This continues the recent downtrend for KBH, as the stock is now down about 12% since Sep 17.

On Sep 24, the company reported third-quarter fiscal 2015 adjusted earnings of 23 cents per share beating the Zacks Consensus Estimate of 22 cents by 4.6%. Earnings, however, declined about 18% year over year from 28 cents, as the strong revenues were offset by year over year decline in margins.

Although this slump was obviously disappointing, the homebuilding company has seen 2 positive revisions and its current year earnings consensus has moved higher over the past few weeks. This suggests that the recent slump might be a temporary blip on the radar for KBH. So make sure to keep an eye on this stock going forward to see if yesterday's price decline is confirmed by more weakness, or if it can rebound in the weeks ahead.

KBH currently has a Zacks Rank #3 (Hold).

A better-ranked stock in the same sector is DR Horton Inc. ( DHI ), holding a Zacks Rank #2 (Buy).

Is KBH going up? Or down? Predict to see what others think: Up or Down

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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.


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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