Here's Why KB Home (KBH) Gained But Lagged the Market Today

KB Home (KBH) closed the latest trading day at $65.90, indicating a +0.06% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.73%. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq gained 0.98%.Coming into today, shares of the homebuilder had lost 17.05% in the past month. In that same time, the Construction sector lost 8.04%, while the S&P 500 gained 0.34%.Market participants will be closely following the financial results of KB Home in its upcoming release. The company plans to announce its earnings on January 9, 2025. The company's earnings per share (EPS) are projected to be $2.45, reflecting a 32.43% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.99 billion, up 19% from the prior-year quarter.It is also important to note the recent changes to analyst estimates for KB Home. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 1.47% lower within the past month. KB Home is currently a Zacks Rank #4 (Sell).Looking at valuation, KB Home is presently trading at a Forward P/E ratio of 7.3. For comparison, its industry has an average Forward P/E of 8.04, which means KB Home is trading at a discount to the group.It's also important to note that KBH currently trades at a PEG ratio of 0.56. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 0.68.The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 35% of all 250+ industries.The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want 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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks