KB Home (KBH) closed at $66.50 in the latest trading session, marking a +1.65% move from the prior day. This change outpaced the S&P 500's 0.72% gain on the day. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.35%.

The homebuilder's shares have seen an increase of 0.54% over the last month, surpassing the Construction sector's loss of 1.03% and falling behind the S&P 500's gain of 1.02%.

Analysts and investors alike will be keeping a close eye on the performance of KB Home in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.58, indicating a 10.23% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.5 billion, indicating a 2.37% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.42 per share and revenue of $7.21 billion. These totals would mark changes of -0.36% and +3.98%, respectively, from last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for KB Home. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 6.69% fall in the Zacks Consensus EPS estimate. KB Home presently features a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that KB Home has a Forward P/E ratio of 7.77 right now. Its industry sports an average Forward P/E of 8.03, so one might conclude that KB Home is trading at a discount comparatively.

We can additionally observe that KBH currently boasts a PEG ratio of 0.94. 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 Building Products - Home Builders industry had an average PEG ratio of 0.95 as trading concluded yesterday.

The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 236, positioning it in the bottom 6% of all 250+ industries.

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.

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

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