In the latest market close, KB Home (KBH) reached $67.72, with a -0.19% movement compared to the previous day. This change lagged the S&P 500's 0.53% gain on the day. Elsewhere, the Dow gained 0.93%, while the tech-heavy Nasdaq added 0.22%.

Prior to today's trading, shares of the homebuilder had gained 2.18% over the past month. This has lagged the Construction sector's gain of 4.6% and the S&P 500's gain of 2.69% in that time.

Market participants will be closely following the financial results of KB Home in its upcoming release. In that report, analysts expect KB Home to post earnings of $1.60 per share. This would mark a year-over-year decline of 9.09%. Alongside, our most recent consensus estimate is anticipating revenue of $1.51 billion, indicating a 2.6% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.50 per share and a revenue of $7.25 billion, signifying shifts of +0.59% and +4.57%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for KB Home. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 5.73% lower. KB Home currently has a Zacks Rank of #5 (Strong Sell).

Digging into valuation, KB Home currently has a Forward P/E ratio of 7.98. For comparison, its industry has an average Forward P/E of 8.36, which means KB Home is trading at a discount to the group.

Also, we should mention that KBH has a PEG ratio of 0.93. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 0.85.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 220, which puts it in the bottom 13% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow KBH in the coming trading sessions, be sure to utilize Zacks.com.

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