The most recent trading session ended with KB Home (KBH) standing at $67.12, reflecting a -1.83% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a loss of 0.47% for the day. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 0.51%.

Prior to today's trading, shares of the homebuilder had gained 4.03% over the past month. This has outpaced the Construction sector's gain of 0.6% and the S&P 500's gain of 1.67% in that time.

Market participants will be closely following the financial results of KB Home in its upcoming release. The company's upcoming EPS is projected at $1.58, signifying a 10.23% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.51 billion, up 2.6% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $8.50 per share and revenue of $7.25 billion, which would represent changes of +0.59% and +4.57%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for KB Home. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 5.82% lower. At present, KB Home boasts a Zacks Rank of #4 (Sell).

In the context of valuation, KB Home is at present trading with a Forward P/E ratio of 8.05. This indicates a discount in contrast to its industry's Forward P/E of 8.34.

We can also see that KBH currently has a PEG ratio of 0.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Building Products - Home Builders industry stood at 0.98 at the close of the market yesterday.

The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 218, placing it within the bottom 14% 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.

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

KB Home (KBH) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research