Here's Why KB Home (KBH) Fell More Than Broader Market

In the latest trading session, KB Home (KBH) closed at $50.61, marking a -4.49% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.84%. Meanwhile, the Dow lost 0.7%, and the Nasdaq, a tech-heavy index, lost 0.91%. Heading into today, shares of the homebuilder had lost 3.74% over the past month, outpacing the Construction sector's loss of 0% and lagging the S&P 500's gain of 1.44%.The investment community will be closely monitoring the performance of KB Home in its forthcoming earnings report. The company is scheduled to release its earnings on June 23, 2025. The company's upcoming EPS is projected at $1.45, signifying a 32.56% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.5 billion, indicating a 12.55% decline compared to the corresponding quarter of the prior year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.05 per share and a revenue of $6.64 billion, representing changes of -16.57% and -4.11%, respectively, from the prior year. It is also important to note the recent changes to analyst estimates for KB Home. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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, the Zacks Consensus EPS estimate has moved 0.11% lower. KB Home currently has a Zacks Rank of #4 (Sell). Looking at valuation, KB Home is presently trading at a Forward P/E ratio of 7.51. This denotes a discount relative to the industry average Forward P/E of 9.29. Meanwhile, KBH's PEG ratio is currently 2.4. 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. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 1.77 based on yesterday's closing prices. The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 224, putting it in the bottom 9% of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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. Don’t Miss Out on These Stocks Before you make your next investing move, we have a free report that highlights the %%CTA_TEXT%% to buy.Our experts at Zacks Investment Research hand-selected these stocks for their eye-opening growth projections.Since 1988, our stock picks have more than doubled the S&P 500 with an average gain of +23.89% per year using the Zacks Rank stock-rating system.Register now to see the %%CTA_TEXT%%.7 best stocksWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KB Home (KBH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks