KB Home (KBH) closed at $60.27 in the latest trading session, marking a -0.56% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.07%. On the other hand, the Dow registered a loss of 0.62%, and the technology-centric Nasdaq decreased by 1.71%.

Shares of the homebuilder have depreciated by 6.74% over the course of the past month, underperforming the Construction sector's loss of 6.73% and outperforming the S&P 500's loss of 7.03%.

Investors will be eagerly watching for the performance of KB Home in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on March 24, 2025. On that day, KB Home is projected to report earnings of $1.58 per share, which would represent a year-over-year decline of 10.23%. Meanwhile, our latest consensus estimate is calling for revenue of $1.5 billion, up 2.37% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.42 per share and a revenue of $7.21 billion, signifying shifts of -0.36% and +3.98%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for KB Home. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. KB Home is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that KB Home has a Forward P/E ratio of 7.2 right now. This represents a discount compared to its industry's average Forward P/E of 8.43.

One should further note that KBH currently holds a PEG ratio of 0.87. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 0.84 based on yesterday's closing prices.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 232, which puts it in the bottom 8% of all 250+ industries.

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

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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

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