KB Home (KBH) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, KB Home (KBH) closed at $54.30, marking a +2.55% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 1.01%. Meanwhile, the Dow experienced a rise of 0.83%, and the technology-dominated Nasdaq saw an increase of 1.22%.

Shares of the homebuilder have depreciated by 20.21% over the course of the past month, underperforming the Construction sector's loss of 12.24%, and the S&P 500's loss of 2.86%.

The investment community will be paying close attention to the earnings performance of KB Home in its upcoming release. The company is slated to reveal its earnings on March 24, 2026. The company is predicted to post an EPS of $0.52, indicating a 65.1% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.1 billion, showing a 21.05% drop compared to the year-ago quarter.

KBH's full-year Zacks Consensus Estimates are calling for earnings of $4.11 per share and revenue of $5.53 billion. These results would represent year-over-year changes of -36.96% and -11.38%, respectively.

Investors might also notice recent changes to analyst estimates for KB Home. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.78% lower. KB Home is holding a Zacks Rank of #4 (Sell) right now.

In the context of valuation, KB Home is at present trading with a Forward P/E ratio of 12.88. This denotes a premium relative to the industry average Forward P/E of 12.43.

Also, we should mention that KBH has a PEG ratio of 7.04. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Building Products - Home Builders industry stood at 1.38 at the close of the market yesterday.

The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 232, this industry ranks in the bottom 6% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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