KB Home Stock Decline: What to Expect from Earnings Report and Industry Trends

In the latest trading session, KB Home (KBH) closed at $50.61, marking a -4.49% decline from the previous day. The stock underperformed the S&P 500, which registered a daily loss of 0.84%. The Dow lost 0.7%, and the Nasdaq, a tech-heavy index, lost 0.91%. Over the past month, shares of the homebuilder had lost 3.74%, outpacing the Construction sector's loss of 0% but lagging the S&P 500's gain of 1.44%. The investment community will be closely monitoring the performance of KB Home in its forthcoming earnings report, scheduled to be released on June 23, 2025. The company's upcoming EPS is projected at $1.45, signifying a 32.56% drop compared to the same quarter of the previous year. The current consensus estimate forecasts revenue to be $1.5 billion, indicating a 12.55% decline compared to the corresponding quarter of the prior year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.05 per share and a revenue of $6.64 billion, representing changes of -16.57% and -4.11%, respectively, from the prior year. It is also important to note the recent changes to analyst estimates for KB Home, which tend to reflect the evolving nature of short-term business trends. Positive estimate revisions can be interpreted as a good sign for the business outlook. KB Home currently has a Zacks Rank of #4 (Sell), indicating that it may not be a good investment at this time based on the proprietary model that takes estimate changes into account. The company is trading at a Forward P/E ratio of 7.51, which denotes a discount relative to the industry average Forward P/E of 9.29. However, its PEG ratio of 2.4 suggests that it may not be offering much in terms of expected earnings growth compared to its peers in the Building Products - Home Builders industry, which has an average PEG ratio of 1.77 based on yesterday's closing prices. Overall, investors should keep an eye on KB Home's upcoming earnings report and use Zacks.com to monitor all these stock-influencing metrics throughout the forthcoming trading sessions.