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In the latest trading session, KB Home (KBH) closed at $56, marking a -0.23% move from the previous day. This change lagged the S&P 500's 0.73% gain on the day. On the other hand, the Dow registered a loss of 0.64%, and the technology-centric Nasdaq increased by 1.61%.

Coming into today, shares of the homebuilder had gained 10.02% in the past month. In that same time, the Construction sector gained 13.93%, while the S&P 500 gained 9.07%.

The upcoming earnings release of KB Home will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.45, reflecting a 32.56% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.5 billion, down 12.55% from the year-ago period.

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.

Any recent changes to analyst estimates for KB Home should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, the Zacks Consensus EPS estimate has moved 4.29% lower. KB Home currently has a Zacks Rank of #4 (Sell).

In terms of valuation, KB Home is presently being traded at a Forward P/E ratio of 7.96. For comparison, its industry has an average Forward P/E of 9.82, which means KB Home is trading at a discount to the group.

Meanwhile, KBH's PEG ratio is currently 2.54. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 1.32.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 235, which puts it in the bottom 5% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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

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