The most recent trading session ended with KB Home (KBH) standing at $64.08, reflecting a +0.99% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily gain of 0.67%. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw an increase of 0.98%.

Prior to today's trading, shares of the homebuilder had gained 0.41% over the past month. This has lagged the Construction sector's gain of 1.44% and the S&P 500's gain of 2.07% in that time.

The investment community will be paying close attention to the earnings performance of KB Home in its upcoming release. The company is expected to report EPS of $1.58, down 10.23% from the prior-year quarter. 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.

For the full year, the Zacks Consensus Estimates are projecting earnings of $8.42 per share and revenue of $7.21 billion, which would represent changes of -0.36% and +3.98%, respectively, from the prior year.

Investors should also take note of any recent adjustments 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 6.69% lower. KB Home is currently a Zacks Rank #4 (Sell).

In the context of valuation, KB Home is at present trading with a Forward P/E ratio of 7.54. This represents a discount compared to its industry's average Forward P/E of 8.09.

It's also important to note that KBH currently trades at a PEG ratio of 0.91. 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 currently had an average PEG ratio of 0.93 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 237, finds itself in the bottom 6% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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