Why the Market Dipped But KB Home (KBH) Gained Today

In the latest trading session, KB Home (KBH) closed at $78.53, marking a +0.15% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.61% for the day. Meanwhile, the Dow experienced a drop of 0.47%, and the technology-dominated Nasdaq saw a decrease of 0.64%.Shares of the homebuilder witnessed a loss of 7% over the previous month, trailing the performance of the Construction sector with its gain of 2.26% and the S&P 500's gain of 3.07%.Analysts and investors alike will be keeping a close eye on the performance of KB Home in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.47, marking a 33.51% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.99 billion, showing a 19% escalation compared to the year-ago quarter.Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.44 per share and revenue of $6.92 billion, indicating changes of +20.06% and +7.98%, respectively, compared to the previous year.It is also important to note the recent changes to analyst estimates for KB Home. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.04% fall in the Zacks Consensus EPS estimate. KB Home is currently sporting a Zacks Rank of #3 (Hold).In the context of valuation, KB Home is at present trading with a Forward P/E ratio of 9.29. Its industry sports an average Forward P/E of 9.4, so one might conclude that KB Home is trading at a discount comparatively.One should further note that KBH currently holds a PEG ratio of 0.67. 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 average PEG ratio for the Building Products - Home Builders industry stood at 0.83 at the close of the market yesterday.The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 79, positioning it in the top 32% 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.Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.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