KB Home(US:KBH) ZACKS·2025-11-26 23:51Core Viewpoint - KB Home's stock performance is under scrutiny as it faces a significant year-over-year earnings decline in the upcoming earnings report, with analysts projecting earnings of $1.53 per share, a drop of 25% [2]. Group 1: Stock Performance - KB Home closed at $64.78, reflecting a +1.58% increase from the previous day, outperforming the S&P 500's gain of 0.69% [1]. - Over the past month, KB Home's stock has decreased by 0.08%, which is better than the Construction sector's loss of 3.09% and the S&P 500's loss of 0.31% [1]. Group 2: Earnings Estimates - Analysts expect KB Home to report earnings of $1.53 per share, indicating a year-over-year decline of 25% [2]. - The full-year Zacks Consensus Estimates predict earnings of $6.39 per share and revenue of $6.19 billion, representing year-over-year changes of -24.38% and -10.68%, respectively [2]. Group 3: Analyst Estimates and Rankings - Recent changes in analyst estimates for KB Home are crucial as they reflect short-term business dynamics, with positive revisions indicating optimism about profitability [3]. - The Zacks Rank system, which evaluates estimate changes, currently ranks KB Home at 4 (Sell) [5]. Group 4: Valuation Metrics - KB Home has a Forward P/E ratio of 9.98, which is lower than the industry average Forward P/E of 12.26, indicating a valuation discount [6]. - The company has a PEG ratio of 5.25, significantly higher than the industry average PEG ratio of 1.84, suggesting that the stock may be overvalued relative to its expected earnings growth [7]. Group 5: Industry Context - The Building Products - Home Builders industry, to which KB Home belongs, ranks in the bottom 13% of all industries, with a Zacks Industry Rank of 215 [8].