KB Home (KBH) closed at $62.13 in the latest trading session, marking a -1.68% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.01%. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq added 0.26%.

Shares of the homebuilder have depreciated by 7.58% over the course of the past month, outperforming the Construction sector's loss of 10.8% and lagging the S&P 500's loss of 2.26%.

Investors will be eagerly watching for the performance of KB Home in its upcoming earnings disclosure. 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.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.42 per share and a revenue of $7.21 billion, indicating changes of -0.36% and +3.98%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for KB Home. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 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. Over the past month, there's been a 1.02% fall in the Zacks Consensus EPS estimate. KB Home is currently sporting a Zacks Rank of #4 (Sell).

Looking at valuation, KB Home is presently trading at a Forward P/E ratio of 7.51. This represents a discount compared to its industry's average Forward P/E of 8.46.

Also, we should mention that KBH has a PEG ratio of 0.91. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. KBH's industry had an average PEG ratio of 0.92 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 241, placing it within the bottom 4% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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

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