Latest news with #KBH
Yahoo
3 days ago
- Business
- Yahoo
Is Trending Stock KB Home (KBH) a Buy Now?
KB Home (KBH) has recently been on list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Over the past month, shares of this homebuilder have returned +0.7%, compared to the Zacks S&P 500 composite's +6% change. During this period, the Zacks Building Products - Home Builders industry, which KB Home falls in, has gained 5.2%. The key question now is: What could be the stock's future direction? Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. KB Home is expected to post earnings of $1.82 per share for the current quarter, representing a year-over-year change of -10.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.9%. The consensus earnings estimate of $6.91 for the current fiscal year indicates a year-over-year change of -18.2%. This estimate has changed -2% over the last 30 days. For the next fiscal year, the consensus earnings estimate of $7.44 indicates a change of +7.6% from what KB Home is expected to report a year ago. Over the past month, the estimate has changed -2.6%. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, KB Home is rated Zacks Rank #4 (Sell). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth. For KB Home, the consensus sales estimate for the current quarter of $1.79 billion indicates a year-over-year change of +2.3%. For the current and next fiscal years, $6.64 billion and $6.75 billion estimates indicate -4.1% and +1.6% changes, respectively. KB Home reported revenues of $1.53 billion in the last reported quarter, representing a year-over-year change of -10.5%. EPS of $1.5 for the same period compares with $2.15 a year ago. Compared to the Zacks Consensus Estimate of $1.5 billion, the reported revenues represent a surprise of +2.3%. The EPS surprise was +3.45%. Over the last four quarters, KB Home surpassed consensus EPS estimates two times. The company topped consensus revenue estimates three times over this period. No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. KB Home is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about KB Home. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term. 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 This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
6 days ago
- Business
- Business Insider
RBC Capital Sticks to Its Hold Rating for KB Home (KBH)
In a report released on June 24, Michael Dahl from RBC Capital maintained a Hold rating on KB Home (KBH – Research Report), with a price target of $58.00. The company's shares closed yesterday at $52.13. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Dahl is a 5-star analyst with an average return of 9.0% and a 59.96% success rate. Dahl covers the Consumer Cyclical sector, focusing on stocks such as DR Horton, Toll Brothers, and KB Home. Currently, the analyst consensus on KB Home is a Hold with an average price target of $60.63, representing a 16.31% upside. In a report released on June 25, KBW also maintained a Hold rating on the stock with a $58.00 price target. The company has a one-year high of $89.70 and a one-year low of $48.90. Currently, KB Home has an average volume of 1.41M. Based on the recent corporate insider activity of 34 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of KBH in relation to earlier this year. Last month, Arthur Reginald Collins, a Director at KBH sold 5,000.00 shares for a total of $271,900.00.
Yahoo
24-06-2025
- Business
- Yahoo
KB Home Keeps Toughing It Out
KB Home saw revenue and earnings fall sharply from year-ago levels, but the homebuilder still topped expectations. A difficult market environment in homebuilding is weighing on the entire industry, but KB Home is working to be more efficient with its operations to compensate. Nevertheless, some investors weren't satisfied with guidance for the full 2025 fiscal year. 10 stocks we like better than KB Home › Here's our initial take on KB Home's (NYSE: KBH) fiscal 2025 second-quarter financial report. Metric Q2 FY 2024 Q2 FY 2025 Change vs. Expectations Total revenue $1.71 billion $1.53 billion -11% Beat Adjusted earnings per share $2.15 $1.50 -30% Beat Homes delivered 3,523 3,120 -11% n/a Average selling price $483,000 $488,700 +1% n/a KB Home's management described the homebuilder's financial performance for the fiscal second quarter (ending May 31) as "solid," but there's no doubt that things are tough in the housing market. Revenue was down 11% year over year as the number of homes that KB Home delivered during the quarter fell by the same percentage. Net income plunged 36% as the homebuilder dealt with lower profit margins and higher overhead costs, and it took sizable repurchases of stock to cut the decline in earnings on a per-share basis to 30%. The company also had to offer larger concessions in order to get homebuyers to move forward with purchases. CEO Jeff Mezger tried to find good things about the challenges KB Home faces. The CEO pointed to shorter build times and lower construction costs as having been valuable in keeping KB Home operations going. At the same time, though, the company is cutting back on land acquisition and development investments as it waits for market conditions to improve. That, in turn, is freeing up more money for share buybacks. KB Home spent $200 million to repurchase stock at an average cost of about $54 per share. At that price, purchases boost book value, which is another positive. It's not apparent when conditions in housing will improve. KB Home's guidance for fiscal 2025 includes revenue of between $6.3 billion and $6.5 billion, with average selling prices remaining in the $480,000-to-$490,000 range. That implies some level of bounceback in the second half of the fiscal year, but that seems far from certain at this point, given macroeconomic pressures and continued high interest rates. KB Home shares responded negatively to the report despite the company posting quarterly results that topped expectations. The stock fell about 2% in the first hour of trading in the after-hours market late Monday following the release. At this point, investors seem to be comfortable with the declines in key metrics that KB Home has already suffered, but they want to see clearer signs that an end is in sight. Even once housing market conditions improve, it could take a while for KB Home to get back up to speed. Backlogs have fallen precipitously, going from 6,270 homes 12 months ago to just 4,776 currently. The value of that backlog is down 27% to $2.29 billion. Cancellation rates have grown as well, rising to 16% from 13% a year ago. Inventories have also risen, indicating weak demand. None of these factors affect the long-term thesis for KB Home, with structural shortages in available housing having a sizable impact across the U.S. in many fast-growing markets. In the meantime, KB Home hopes that now will prove to be an astute time to make major stock repurchases to add shareholder value even when its core business is going through short-term challenges. Full earnings report Investor relations page Additional podcast coverage of homebuilder and solar stocks Before you buy stock in KB Home, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and KB Home wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $676,023!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,692!* Now, it's worth noting Stock Advisor's total average return is 793% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool recommends KB Home and recommends the following options: short July 2025 $60 calls on KB Home. The Motley Fool has a disclosure policy. KB Home Keeps Toughing It Out was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-06-2025
- Business
- Yahoo
KB Home Cuts Full-Year Outlook Amid Consumer Uncertainty
KB Home on Monday topped analysts' estimates for the second quarter, while lowering its full-year outlook. The homebuilder lowered its fiscal 2025 revenue forecast after a weaker-than-expected spring selling season. CEO Jeffrey Mezger said that "consumers are continuing to demonstrate a lack of confidence about the short term" housing Home (KBH) topped second-quarter revenue and profit estimates after the bell Monday, but cut its full-year sales forecast as the housing market remains sluggish. Revenue fell more than 10% year-over-year to $1.53 billion but came in narrowly above Visible Alpha consensus. Earnings per share of $1.50 dropped from $2.15 a year ago but also topped analysts' projections. Still, KB Home lowered its housing revenue forecast for the second straight quarter to $6.30 billion to $6.50 billion, down from the $6.60 billion to $7.00 billion range the company laid out in March and below analysts' expectations of $6.57 billion. "While longer term the outlook for the housing market remains favorable driven by demographics and an undersupply of homes, consumers are continuing to demonstrate a lack of confidence about the short term, which has impacted their home purchase decisions," CEO Jeffrey Mezger said in Monday's earnings call, according to a transcript from AlphaSense. Mezger said the company saw "more subdued demand" in the spring selling season as Americans faced affordability challenges, persistently high mortgage rates, and other macro and geopolitical uncertainty. CFO Rob Dillard said KB Home expects to generate $1.5 billion to $1.7 billion in revenue for the third quarter, below the $1.8 billion analyst consensus, with an average home selling price of $470,000 to $480,000, below its full-year average projection of $480,000 to $490,000. In a note following the report, UBS analysts cut their price target for KB Home to $80 from $86 while keeping their "buy" rating. "Despite choppy market conditions, we believe the setup for homebuilder stocks remains favorable, given reset expectations and the group's tendency to bounce ahead of a bottom," the analysts wrote. KB Home shares, which entered Tuesday down nearly 20% since the start of this year, are down a further 1.7% an hour before the opening bell. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
24-06-2025
- Business
- Business Insider
KBH Earnings: KB Home's Stock Falls on Weak Forward Guidance
The stock of KB Home (KBH) is down about 3% after the U.S. homebuilder lowered its full-year guidance, saying it expects further weakness in the real estate market. Confident Investing Starts Here: The disappointing outlook overshadowed what was otherwise a strong print from KB Home. The Los Angeles, California-based company announced Fiscal second-quarter earnings per share (EPS) of $1.50, which beat the consensus estimate of $1.47. Revenue for the quarter ended May 31 was $1.53 billion, beating the $1.51 billion expected on Wall Street. However, both the top and bottom line numbers reported for Fiscal Q2 were lower than a year ago, when the company's EPS came in at $2.15 and its sales totaled $1.71 billion. KB Home also lowered its full-year Fiscal 2025 guidance, saying it now expects revenue of $6.30 billion to $6.50 billion, down from $6.60 billion to $7 billion previously. Homebuilding operating income declined to $131.5 million from $188.2 million a year ago, while the company's homebuilding operating margin fell 9% from 11.1% a year earlier in the latest quarter. Also, housing gross profit fell to 19.3% from 21.1% a year ago, mainly due to price reductions and homebuyer concessions. KB Home's net income. Source: Main Street Data Stock Buybacks In the company's earnings release, KB Home's CEO Jeffrey Mezger said, 'In this environment and given our strong existing land pipeline, we are scaling back our land acquisition and development investments while increasing share repurchases.' KB Home bought back $200 million worth of common stock at an average price of $54 per share in the just completed quarter. Mezger said the company plans to continue repurchasing shares during the rest of this year. The average selling price of a KB Home property was $488,700 during the recent quarter, down from $500,700 in the previous quarter amid ongoing softness in the real estate market. Net orders decline 13% year-over-year to 3,460, while net order value fell 21% to $1.61 billion. KBH stock has declined 18% this year. Is KBH Stock a Buy? The stock of KB Home has a consensus Hold rating among 14 Wall Street analysts. That rating is based on four Buy, eight Hold, and two Sell recommendations issued in the last three months. The average KBH price target of $66 implies 23.78% upside from current levels. These ratings are likely to change after the company's financial results.
