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In the latest market close, KB Home (KBH) reached $64.47, with a -0.92% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily loss of 1.11%. Elsewhere, the Dow saw a downswing of 0.42%, while the tech-heavy Nasdaq depreciated by 1.89%.
The homebuilder's shares have seen a decrease of 18.12% over the last month, not keeping up with the Construction sector's loss of 10.59% and the S&P 500's loss of 1.7%.
The investment community will be paying close attention to the earnings performance of KB Home in its upcoming release. The company is slated to reveal its earnings on January 13, 2025. The company's upcoming EPS is projected at $2.45, signifying a 32.43% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.99 billion, up 19% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for KB Home. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% lower. KB Home is currently sporting a Zacks Rank of #4 (Sell).
In the context of valuation, KB Home is at present trading with a Forward P/E ratio of 7.21. This represents a discount compared to its industry's average Forward P/E of 7.77.
It's also important to note that KBH currently trades at a PEG ratio of 0.56. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 0.65.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 215, this industry ranks in the bottom 15% of all industries, numbering over 250.