Core Viewpoint - KB Home is expected to report significant growth in earnings and revenue for its fourth quarter, with analysts projecting earnings of $2.46 per share and revenue of $1.99 billion, compared to $1.85 per share and $1.67 billion in the same period last year [1] Group 1: Earnings and Revenue Expectations - KB Home is set to release its fourth-quarter earnings on January 9, with anticipated earnings of $2.46 per share, an increase from $1.85 per share year-over-year [1] - The company is projected to report quarterly revenue of $1.99 billion, up from $1.67 billion a year earlier [1] Group 2: Analyst Ratings and Price Target - Wells Fargo analyst Sam Reid has maintained an Underweight rating on KB Home and lowered the price target from $83 to $74 [2] Group 3: Dividend Information - KB Home currently offers an annual dividend yield of 1.55%, translating to a quarterly dividend of 25 cents per share, or $1.00 annually [2] - To achieve a monthly income of $500 from dividends, an investor would need to own approximately 6,000 shares, equating to a total investment of about $387,840 [3] - For a more conservative monthly income goal of $100, an investor would need to hold 1,200 shares, requiring an investment of around $77,568 [4] Group 4: Dividend Yield Dynamics - The dividend yield can fluctuate based on changes in the stock price and dividend payments, impacting the overall yield [4][5] - An example illustrates that if a stock's price increases, the dividend yield decreases, and vice versa [5] - Changes in the dividend payment itself can also affect the dividend yield, with increases leading to higher yields if the stock price remains constant [6] Group 5: Stock Performance - KB Home shares experienced a decline of 1.6%, closing at $64.64 [6]

Earnings and Revenue Projections - KB Home is expected to report quarterly earnings of $2 46 per share, up from $1 85 per share in the year-ago period [1] - The company projects quarterly revenue of $1 99 billion, compared to $1 67 billion a year earlier [1] Previous Quarter Performance - KB Home reported third-quarter revenue of $1 75 billion, beating analyst estimates of $1 728 billion [2] - Third-quarter earnings were $2 04 per share, surpassing analyst estimates of $2 02 per share [2] - KB Home shares fell 1 6% to close at $64 64 on Thursday [2] Analyst Ratings and Price Targets - JP Morgan analyst Michael Rehaut maintained a Neutral rating and cut the price target from $92 5 to $82 on Dec 13, 2024 [4] - Barclays analyst Matthew Bouley downgraded the stock from Overweight to Equal-Weight and slashed the price target from $99 to $85 on Dec 11, 2024 [4] - Wedbush analyst Jay McCanless maintained a Neutral rating and raised the price target from $67 to $75 on Sept 25, 2024 [4] - B of A Securities analyst Rafe Jadrosich maintained a Neutral rating and boosted the price target from $75 to $90 on Sept 19, 2024 [4] - RBC Capital analyst Mike Dahl downgraded the stock from Sector Perform to Underperform with a price target of $70 on Sept 5, 2024 [4]

Earnings and Revenue Projections - KB Home is set to announce its earnings on January 9, 2025, with projected EPS of $2 45, reflecting a 32 43% increase from the same quarter last year [1] - Revenue is expected to reach $1 99 billion, up 19% from the prior-year quarter [1] Valuation Metrics - KB Home currently trades at a PEG ratio of 0 56, lower than the industry average of 0 68 [2] - The company has a Forward P/E ratio of 7 3, trading at a discount compared to the industry average of 8 04 [7] Stock Performance - KB Home shares lost 17 05% in the past month, underperforming the Construction sector, which lost 8 04%, and the S&P 500, which gained 0 34% [8] - The stock closed at $65 90, with a +0 06% change from the previous session, lagging behind the S&P 500's daily gain of 0 73%, the Dow's 0 16%, and the Nasdaq's 0 98% [11] Industry and Sector Analysis - The Building Products - Home Builders industry has a Zacks Industry Rank of 164, placing it in the bottom 35% of all 250+ industries [10] - The Zacks Industry Rank shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [3] Analyst Estimates and Revisions - The Zacks Consensus EPS estimate for KB Home has moved 1 47% lower within the past month [4] - Recent changes to analyst estimates reflect the dynamic nature of near-term business trends, with positive revisions indicating optimism about the company's business and profitability [9] Zacks Rank and Model - KB Home currently holds a Zacks Rank 4 (Sell) [4] - The Zacks Rank system, which integrates estimate changes, has a proven track record of outperformance, with 1 stocks returning an average of +25% annually since 1988 [4][6]

KB Home (NYSE: KBH ) operates as a homebuilder in the West Coast, Southwest, Central, and Southeast U.S. segments, with the largest segment being the West Coast segment with 44% of Q3 revenues and 32% of deliveries.I am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers behind a compa ...

Group 1 - KB Home's stock closed at $82.74, down 0.47% from the previous session, underperforming the S&P 500 which gained 0.05% [1] - Over the past month, KB Home shares increased by 4.3%, lagging behind the Construction sector's gain of 7.86% and the S&P 500's gain of 5.75% [1] Group 2 - KB Home is expected to report an EPS of $2.47, a 33.51% increase year-over-year, with anticipated revenue of $1.99 billion, reflecting a 19% rise from the same quarter last year [2] - Recent changes in analyst estimates for KB Home indicate a favorable outlook on the company's business health and profitability [3] Group 3 - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), shows KB Home currently holds a Zacks Rank of 3 (Hold) [5] - Over the past month, there has been a 0.67% decline in the Zacks Consensus EPS estimate for KB Home [5] Group 4 - KB Home's Forward P/E ratio is 9.08, which is lower than the industry's average Forward P/E of 10.03, indicating a valuation discount [6] - The company's PEG ratio stands at 0.65, compared to the industry's average PEG ratio of 0.76 [6] Group 5 - The Building Products - Home Builders industry, part of the Construction sector, holds a Zacks Industry Rank of 126, placing it in the top 50% of over 250 industries [7] - Top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Performance - KB Home closed at $82.86, reflecting a +0.22% change from the previous day, outperforming the S&P 500's 0.38% loss [1] - Over the past month, KB Home shares gained 5.39%, while the Construction sector increased by 7.07% and the S&P 500 by 3.76% [1] Upcoming Earnings - The upcoming EPS for KB Home is projected at $2.47, indicating a 33.51% increase year-over-year [2] - Revenue is estimated at $1.99 billion, representing a 19% increase from the same quarter last year [2] Annual Estimates - For the annual period, earnings are anticipated at $8.44 per share and revenue at $6.92 billion, reflecting increases of +20.06% and +7.98% respectively [3] - Recent analyst estimate revisions suggest optimism regarding the company's business and profitability [3] Valuation Metrics - KB Home has a Forward P/E ratio of 9.8, which is lower than the industry average of 9.96 [5] - The company holds a PEG ratio of 0.71, compared to the industry average PEG ratio of 0.75 [6] Industry Context - The Building Products - Home Builders industry is part of the Construction sector, currently ranked 129 out of over 250 industries, placing it in the bottom 49% [6][7] - The Zacks Industry Rank indicates that top-rated industries outperform the bottom half by a factor of 2 to 1 [7]

Market Overview - The iShares U.S. Home Construction ETF (ITB) has risen over 38% in the past 12 months, reaching a 1-year high in mid-October, driven by optimism surrounding potential Federal Reserve rate cuts [1][2] - As of mid-November, the Federal Reserve announced a second rate cut, which could lower borrowing costs for homebuilders, although ITB has seen a 6.5% decline since mid-October [2] Company Analysis: Meritage Homes (MTH) - Meritage Homes focuses on building single-family homes for first-time buyers, facing challenges due to market conditions [3] - Analysts at Raymond James downgraded MTH to "market perform" due to expected near-term earnings pressure and external factors such as labor concerns and potential higher mortgage premiums [4] - Despite the downgrade, MTH shares have a "moderate buy" rating with an upside potential of over 20%, and a competitive forward P/E ratio of 8.5 [5] Company Analysis: Toll Brothers (TOL) - Toll Brothers operates in the luxury homebuilding sector, reporting a 2% year-over-year increase in home sales revenues, although net income and earnings per share slightly declined [6] - The company has successfully navigated market volatility and inflationary pressures, with an 11% increase in delivered homes [6] - Analysts rate Toll Brothers as a "moderate buy," anticipating an earnings growth shift of 8% [7] Company Analysis: KB Home (KBH) - KB Home builds single-family homes and has been impacted by customer sensitivity to mortgage rates and inflation, leading to a missed earnings forecast [8] - Despite challenges, KB Home shares have increased over 46% in the last year, peaking at nearly $90 around the Fed's September meeting [9] - Analysts are cautious, rating KB Home a "hold" and expecting a price decline of 1.4% [9] Industry Assessment - The homebuilder industry presents a mixed outlook, with some companies showing growth potential while others face external challenges that may limit performance [10] - The rapid increase in share prices driven by hopes of lower interest rates could lead to cautious investor sentiment [10]

The U.S. construction is trying to stage a steady comeback as price pressure and borrowing rates continue to ease. September saw a modest rise in construction spending. However, it hit a four-month high, indicating that the sector is recovering from its earlier lows. Residential construction, which had largely been responsible for driving construction spending in the past, saw an uptick in September, fueling overall spending on construction. Homebuilder confidence is also rising fast, with building permits ...

Core Viewpoint - KB Home reported mixed results for Q3 fiscal 2024, with earnings meeting estimates and revenues exceeding expectations, indicating a stable demand despite economic concerns [2][3]. Earnings & Revenue Discussion - Adjusted earnings per share (EPS) for Q3 were $2.04, a 13.3% increase from $1.80 in the previous year, driven by higher net income and share repurchases [3]. - Total revenues reached $1.75 billion, surpassing the consensus estimate of $1.73 billion by 1.5% and reflecting a year-over-year increase of 10.4% [3]. Segment Details - Homebuilding revenues were $1.746 billion, up 10.5% year-over-year, with 3,631 homes delivered, a 7.6% increase from the previous year [4]. - The average selling price (ASP) rose 3.1% to $480,900, while net orders slightly decreased to 3,085 units, though their value increased by 2% to $1.54 billion [4]. - The backlog at the end of the quarter was 5,724 homes, down 1.8% from the previous year, with potential housing revenues from the backlog declining 14% to $2.92 billion [4]. Financial Position - As of August 31, 2024, KB Home had cash and cash equivalents of $374.9 million, down from $727.1 million at the end of fiscal 2023, with total liquidity of $1.46 billion [5]. - The debt-to-capital ratio improved to 29.8% from 30.7% at the end of 2023 [5]. Share Repurchase Activity - In Q3, KB Home repurchased approximately 1.87 million shares for $150 million, with $800 million remaining under the repurchase authorization as of August 31, 2024 [6]. Fiscal 2024 Guidance - The company raised its housing revenue expectation to a range of $6.85-$6.95 billion, up from the previous estimate of $6.70-$6.90 billion, and ASP is now projected at $490,000 [7]. - Housing gross margin is expected to be between 21.1% and 21.2%, slightly down from earlier projections, while operating margin is anticipated to be in the range of 11.1%-11.2% [7]. Market Sentiment - KB Home has a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [10].

KB Home (NYSE:KBH) stock is slipping today, down 1.6% at $77.19 at last glance. The stock is mirroring a familiar pattern since mid-July, however, as it's consistently pulled back to the $78 region before a short-term bounce. This time around, long-term support at the 126-day moving average lingers below as well. Per Schaeffer's Senior Quantitative Analyst Rocky White, the homebuilding name has come within striking distance of its 126-day trendline four other times in the past three years, after trading abo ...