A month has gone by since the last earnings report for Toll Brothers (TOL) . Shares have added about 2.3% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Toll Brothers due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Toll Brothers Inc. before we dive into how investors and analysts have rea ...

Core Insights - Lower mortgage rates and slowing price growth have led to a 3.3% increase in pending home sales in November, marking the largest rise in contract signings since early 2023, surpassing the expected 0.9% increase [1][2] - Year-over-year, contract activity has risen by 2.6%, with all regions experiencing an increase, particularly the West, which saw a 9.2% month-over-month gain [2][3] - The improving affordability in housing, driven by lower mortgage rates and faster wage growth compared to home prices, is encouraging buyers to enter the market [3][4] Market Conditions - The housing market has faced significant challenges since mid-2022 due to rising mortgage rates and increased home prices, which have excluded many potential buyers [4][5] - The average rate for a 30-year mortgage has been around 6.2% recently, down from a peak of 7% in early 2025, contributing to the recent uptick in market activity [5][6] - Despite the recent increase, home sales in 2025 are projected to be at or near three-decade lows, although a gradual normalization of the housing market is anticipated as inventory levels improve and mortgage rates decrease [6]

Company Overview - KB Home (NYSE:KBH) builds and sells homes for various buyers and provides related financial services, including mortgage, insurance, and title services [2] Earnings Report - KB Home reported disappointing earnings, with home deliveries and revenues falling 9% and 15% respectively, despite beating some expectations [1] - Adjusted earnings per share exceeded expectations but decreased by 24% compared to the previous year [1] - The average selling price of homes declined by 7% and missed expectations [1]

In this piece, we will look at the stocks Jim Cramer recently discussed.In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer discussed the latest inflation report. The CPI figures for November were released last week, and they were the first to hit the wires after the government shutdown prevented earlier releases. These inflation figures were a welcome surprise, as while estimates had expected prices to rise by 3.1% in November, the data showed they rose by 2.7% instead.Within the data, anothe ...

Core Viewpoint - KB Home's shares dropped over 8% intra-day due to a cautious outlook for 2026, despite exceeding fourth-quarter earnings expectations [1] Financial Performance - The company reported adjusted earnings of $1.92 per share for the quarter ending November 30, 2025, surpassing analyst estimates of $1.79 [1] - Revenue for the quarter was $1.69 billion, slightly above the consensus forecast of $1.66 billion, but down 15.5% from $2.00 billion in the same quarter last year [1] Housing Deliveries and Pricing - Housing deliveries decreased by 9% to 3,619 homes, while the average selling price fell by 7% year over year to $465,600 [2] - The homebuilding operating income margin, excluding inventory-related charges, contracted to 7.8%, down from 11.5% in the prior-year period [2] Future Guidance - The company's fiscal 2026 guidance projected full-year housing revenue between $5.10 billion and $6.10 billion, indicating a potential decline from fiscal 2025 revenue of $6.21 billion [3] - For the first quarter, KB Home forecasted deliveries of 2,300 to 2,500 homes and housing revenue of $1.05 billion to $1.15 billion [3] Backlog Status - The company reported a quarter-end backlog of 3,128 homes valued at $1.40 billion, down from 4,434 homes valued at $2.24 billion a year earlier, highlighting ongoing challenges in the housing market [4]

Group 1 - KB Home (NYSE:KBH) is a significant player in the U.S. homebuilding industry, competing with companies like Lennar Corporation and D.R. Horton [1] - RBC Capital has set a price target of $54 for KBH, which is approximately 6.07% lower than its current trading price of $57.49 [1] - The stock price of KBH has recently declined by 8.70%, equating to a decrease of $5.46, with daily fluctuations between a low of $56.45 and a high of $59.44 [2] Group 2 - Over the past year, KBH's stock has shown volatility, reaching a high of $72.64 and a low of $48.90, indicating significant price movements [3] - The market capitalization of KBH is approximately $4.02 billion, with a trading volume of 1,281,131 shares on the NYSE, reflecting strong investor interest [3] - Despite the recent decline, KBH's stock volatility suggests ongoing investor engagement and market dynamics [5]

Core Viewpoint - KB Home's shares have declined by 7.9% to $57.81 despite reporting better-than-expected fiscal fourth-quarter earnings and revenue, indicating ongoing challenges in the housing market and a decrease in home deliveries throughout 2025 [1]. Financial Performance - For the fiscal fourth quarter, KB Home reported profits of $1.55 per share, which was below the estimated $1.92, while revenue reached $1.69 billion, exceeding expectations of $1.65 billion [2]. - The company's shares are currently trading below the 160-day moving average, which previously provided support in October and November, and have decreased over 10% in 2025 [2]. Market Activity - There has been an increase in bearish options activity for KB Home, with a 10-day put/call volume ratio of 1.86, placing it in the 84th percentile of its annual range [3]. - On the current trading day, 2,433 puts have been traded, which is 16 times the average intraday volume and more than double the number of calls, with the December 60-strike put being the most popular contract [3].

Core Insights - Home sales in November increased for the third consecutive month, but 2025 sales are projected to be at a 30-year low [1] - Existing home sales rose by 0.5% from October to a seasonally adjusted annual rate of 4.13 million, attributed to lower mortgage rates [1][2] - Despite recent improvements, the housing market remains in a slump due to high prices, elevated mortgage rates, and consumer unease, with sales expected to be the lowest since 1995 [4] Sales Performance - Sales increased month-over-month in the Northeast and South, remained flat in the West, and decreased in the Midwest [5] - Year-over-year, home sales are down by 1% [5] - Housing inventory decreased by 5.9% to 1.43 million units compared to October, but showed a 7.5% improvement from November 2024 [5] Economic Influences - The health of the labor market and inflation trends will be critical for the housing market in the upcoming year [5] - A rebound in the housing market is contingent on a solid labor market, income growth, and economic resilience amid ongoing affordability challenges and elevated mortgage rates [6]

We continue to take a look at a lot of the movers this morning. Diane King Hall joins me and we're taking a look here first at Carnival Cruise. Good morning. Good morning to you, Nicole.So this morning with its results, Carnival's results coming about 15 minutes ago. It was a mixed picture for the quarter. They did have a strong year.Let's go through the trailing quarter. Adjusted EPS coming in at 34 cents a share. Much better than expected.The street was just looking for 25 cents per share. Uh revenue came ...

Core Insights - KB Home reported revenue of $1.69 billion for the quarter ended November 2025, a decrease of 15.3% year-over-year, with EPS at $1.92 compared to $2.52 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $1.65 billion by 2.8%, while EPS also surpassed the consensus estimate of $1.79 by 7.26% [1] Financial Performance - Total backlog of homes stood at 3,128, below the average estimate of 3,400 [4] - Homes delivered totaled 3,619, exceeding the average estimate of 3,506 [4] - Net orders were 2,414, lower than the estimated 2,573 [4] - Average selling price was $465.6 million, slightly below the estimate of $467.42 million [4] - Ending community count was 271, above the estimate of 260 [4] - Total backlog value was $1.4 billion, compared to the average estimate of $1.67 billion [4] - Total revenues from homebuilding were $1.68 billion, surpassing the estimate of $1.64 billion, but reflecting a year-over-year decline of 15.5% [4] - Financial services revenue was $8.69 million, exceeding the estimate of $5.84 million, marking a year-over-year increase of 26.9% [4] - Operating income from homebuilding was $117.1 million, below the average estimate of $139.16 million [4] - Financial services pretax income was $10.61 million, slightly above the estimate of $9.97 million [4] Stock Performance - KB Home shares have returned +8.4% over the past month, outperforming the Zacks S&P 500 composite's +0.9% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]