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KB Home (KBH) closed the most recent trading day at $54.03, moving +1.46% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.15%. Meanwhile, the Dow experienced a rise of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.09%.
Prior to today's trading, shares of the homebuilder had lost 8.77% over the past month. This has lagged the Construction sector's loss of 1.54% and the S&P 500's loss of 0.21% in that time.
The upcoming earnings release of KB Home will be of great interest to investors. The company's upcoming EPS is projected at $1.59, signifying a 26.05% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.58 billion, indicating a 7.52% decline compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.36 per share and revenue of $6.83 billion, indicating changes of -12.9% and -1.4%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for KB Home. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 3.34% fall in the Zacks Consensus EPS estimate. Currently, KB Home is carrying a Zacks Rank of #4 (Sell).
In terms of valuation, KB Home is currently trading at a Forward P/E ratio of 7.24. For comparison, its industry has an average Forward P/E of 7.71, which means KB Home is trading at a discount to the group.
We can additionally observe that KBH currently boasts a PEG ratio of 2.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Home Builders industry currently had an average PEG ratio of 1.25 as of yesterday's close.