In the latest close session, KB Home (KBH) was up +1.57% at $58.96. The stock's performance was ahead of the S&P 500's daily loss of 0.17%. Elsewhere, the Dow saw an upswing of 0.49%, while the tech-heavy Nasdaq depreciated by 0.83%.
Shares of the homebuilder witnessed a loss of 1.07% over the previous month, beating the performance of the Construction sector with its loss of 1.86%, and underperforming the S&P 500's gain of 3.52%.
The investment community will be closely monitoring the performance of KB Home in its forthcoming earnings report. The company is forecasted to report an EPS of $0.88, showcasing a 45.34% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.29 billion, indicating a 20.14% decrease compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.3 per share and revenue of $5.09 billion. These totals would mark changes of -49.39% and -18.37%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.5% higher within the past month. At present, KB Home boasts a Zacks Rank of #3 (Hold).
Investors should also note KB Home's current valuation metrics, including its Forward P/E ratio of 17.61. This expresses a premium compared to the average Forward P/E of 14.47 of its industry.
It is also worth noting that KBH currently has a PEG ratio of 9.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Home Builders industry currently had an average PEG ratio of 2.92 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).