KB Home (KBH) Suffers a Larger Drop Than the General Market: Key Insights

Core Viewpoint - KB Home's stock performance has shown resilience with a notable monthly gain, and upcoming earnings are anticipated to reflect positive growth trends [1][2]. Group 1: Stock Performance - KB Home's shares closed at $67.86, reflecting a -0.56% change from the previous day, underperforming compared to the S&P 500's loss of 0.12% [1]. - Over the past month, KB Home's shares increased by 13.89%, outperforming the Construction sector's gain of 9.47% and the S&P 500's gain of 4.83% [1]. Group 2: Earnings Estimates - Analysts expect KB Home to report earnings of $1.56 per share, indicating a year-over-year growth of 7.59% [1]. - The consensus estimate for revenue is projected at $1.45 billion, reflecting a 4.81% increase from the same quarter last year [1]. - For the annual period, earnings are anticipated to be $7.59 per share with revenue of $6.69 billion, representing increases of +7.97% and +4.35%, respectively [1]. Group 3: Analyst Estimates and Rankings - Recent modifications to analyst estimates for KB Home are crucial, as upward revisions indicate positive sentiment regarding the company's profitability [2]. - The Zacks Rank system, which evaluates these estimate changes, currently ranks KB Home as 2 (Buy) [2]. Group 4: Valuation Metrics - KB Home is trading at a Forward P/E ratio of 8.99, which is lower than the industry average of 9.45 [3]. - The company has a PEG ratio of 0.83, compared to the industry average PEG ratio of 0.88 [3]. - The Building Products - Home Builders industry ranks in the top 6% of all industries, with a Zacks Industry Rank of 15 [3].