KB Home (KBH) Hits Fresh High: Is There Still Room to Run?

Company Performance - KB Home shares have increased by 7% over the past month, reaching a new 52-week high of $64.21 [1] - The company has reported positive earnings surprises for the last four quarters, with the latest EPS of $1.85 exceeding the consensus estimate of $1.69 [2] - For the current fiscal year, KB Home is projected to achieve earnings of $7.59 per share on revenues of $6.69 billion, reflecting a 7.97% increase in EPS and a 4.35% increase in revenues [2] Valuation Metrics - The stock trades at 8.4 times the current fiscal year EPS estimates, below the peer industry average of 9 times [4] - The trailing cash flow basis shows the stock trading at 8 times, matching the peer group's average [4] - KB Home has a PEG ratio of 0.77, indicating it is not among the top echelon of stocks from a value perspective [4] Zacks Rank and Style Scores - KB Home holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, suggesting potential for further gains [5] - The company has a Value Score of A, a Growth Score of A, and a Momentum Score of F, resulting in a combined VGM Score of A [3] Industry Comparison - The Building Products - Home Builders industry is performing well, ranking in the top 7% of all industries [6] - Toll Brothers Inc. is a notable competitor with a Zacks Rank of 1 (Strong Buy) and strong earnings performance, expected to post earnings of $12.82 per share on revenues of $9.94 billion [6] - Toll Brothers shares have gained 13% over the past month, trading at a forward P/E of 8.68 times and a P/CF of 8.26 times [6]