KB Home (NYSE:KBH) Stock, Quote.Headers.trade-ideas

KB Home

KB Home is an American construction company that focuses on residential construction in United States. The company builds single-family homes and communities across different geographical segments which include West Coast which also derives the majority of the revenue, Southwest, Central, and Southeast. The company operates in several markets and focuses on first-time and move-up homebuyers. It also invests in land acquisition and development to support future building activities and is also engaged in financial services operations which includes providing mortgage banking services through its joint venture with a third party.

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Stitch Fix Reports Weak Earnings, Joins KB Home And Other Big Stocks Moving Lower In Wednesday&#39;s Pre-Market Session

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KB Home reported third-quarter revenue of $1.75 billion, beating analyst estimates of $1.728 billion. The U.S. homebuilder reported third-quarter earnings of $2.04 per share, beating analyst estimates of $2.02 per share.

KB Home Q3 Earnings: Revenue Beat, EPS Beat, Net Orders Flat — &#39;Variability In Demand Across The Quarter&#39;

Earnings Misses

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If you&#39;re looking at this morning&#39;s pre-market indexes and experiencing deja vu, you&#39;re not the only one.

Case-Shiller Home Prices Tick in Lower Than Expectations

Wedbush analyst Jay McCanless maintains KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) with a Neutral and raises the price target from $67 to $75.

Price Target

Wedbush Maintains Neutral on KB Home, Raises Price Target to $75

Barclays analyst Matthew Bouley maintains KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) with a Overweight and raises the price target from $78 to $99.

Barclays Maintains Overweight on KB Home, Raises Price Target to $99

U.S. stock futures were mixed this morning, with the Dow futures gaining around 0.1% on Wednesday.
Shares of Stitch Fix, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SFIX#NASDAQ">SFIX</a>) fell sharply in today's pre-market trading after the company reported worse-than-expected <a href="https://www.benzinga.com/news/earnings/24/09/41014297/stitch-fix-stock-falls-after-q4-results-heres-why">fourth-quarter EPS results</a>.
Stitch Fix reported quarterly losses of 29 cents per share, which missed the analyst consensus estimate for losses of 19 cents. Quarterly revenue of $319.6 million beat the analyst consensus estimate of $318.5 million and is a 12.4% decrease year-over-year.
Stitch Fix shares dipped 25.6% to $2.79 in pre-market trading.
Here are some big stocks recording losses in today's pre-market trading session.
<ul>
<li>Target Hospitality Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TH#NASDAQ">TH</a>) shares dipped 17.9% to $7.75 in pre-market trading. Target Hospitality Announced that its board of directors has decided to disband the special committee, which was formed solely of independent directors.</li>
<li>GDS Holdings Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GDS#NASDAQ">GDS</a>) declined 7.5% to $19.91 in pre-market trading after gaining 5% on Tuesday.</li>
<li>KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) shares fell 7.1% to $81.19 in pre-market trading following third-quarter financial results.</li>
<li>Zai Lab Ltd – ADR (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZLAB#NASDAQ">ZLAB</a>) shares declined 5.2% to $20.45 in pre-market trading.</li>
<li>Bilibili Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BILI#NASDAQ">BILI</a>) shares fell 4.8% to $17.73 in pre-market trading after surging 17% on Tuesday.</li>
<li>Wave Life Sciences Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WVE#NASDAQ">WVE</a>) shares slipped 4.8% to $7.80 in pre-market trading after the company announced a $175 million proposed public offering of ordinary shares and pre-funded warrants.</li>
<li>XPeng Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>) shares declined 4.6% to $10.21 in pre-market trading after jumping 12% on Tuesday.</li>
<li>JD.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) shares fell 4% to $32.55 in pre-market trading after gaining 14% on Tuesday.</li>
</ul>
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<li><a href="https://www.benzinga.com/markets/24/09/41013033/top-4-industrials-stocks-which-could-rescue-your-portfolio-this-quarter">Top 4 Industrials Stocks Which Could Rescue Your Portfolio This Quarter</a></li>
</ul>

Stitch Fix Reports Weak Earnings, Joins KB Home And Other Big Stocks Moving Lower In Wednesday's Pre-Market Session

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KB Home shares are trading lower following Q3 earnings. While EPS and revenues beat estimates, the company said net orders were flat with last year and it saw softening in late June through July.

KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) reported third-quarter financial results after the market close on Tuesday. Here&#8217;s a look at the <a href="https://www.benzinga.com/pressreleases/24/09/b41014090/kb-home-reports-2024-third-quarter-results">key metrics from the quarter</a>.
Q3 Earnings: KB Home reported third-quarter revenue of $1.75 billion, beating analyst <a href="https://www.benzinga.com/calendars/earnings">estimates</a> of $1.728 billion. The U.S. homebuilder&nbsp;reported third-quarter earnings of $2.04 per share, beating analyst estimates of $2.02 per share.
KB Home has topped analyst estimates for revenue and earnings in seven consecutive quarters, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.
Total revenue was up 10% year-over-year, while earnings grew 13%. KB Home delivered 3,631 homes in the quarter, up 8% year-over-year. Average selling price was&nbsp;$480,900, up 3%, but net orders were flat year-over-year and inventories jumped 10% to $5.65 billion.
&#8220;We experienced variability in demand across the quarter, with softening in late June through July, as buyers continued to evaluate elevated mortgage interest rates, and general economic concerns were rising. As rates moderated in August, our net orders improved,&#8221; said&nbsp;Jeffrey Mezger, chairman and CEO of KB Home.
&#8220;We are encouraged by this strengthening in demand for our affordably priced personalized homes, and the ongoing positive trend we are experiencing so far in our 2024&nbsp;fourth quarter.&#8221;
KB Home noted it repurchased $150 million worth of its common stock during the quarter. The company had $800 million remaining under its buyback program as of Aug. 31.
See Also: <a href="https://www.benzinga.com/real-estate/24/09/41000406/five-emerging-tech-cities-where-home-values-are-surging-alongside-innovation">Five Emerging Tech Cities Where Home Values Are Surging Alongside Innovation</a>
Outlook: KB Home expects full-year 2024 housing revenues in the range of $6.85 billion to $6.95 billion. Average selling prices for the full year are expected to be approximately $490,000.
Management will hold a conference call to discuss these results at 5 p.m. ET. The company noted that it will provide guidance for the fourth quarter on the call.
KBH Price Action: <a href="https://www.benzinga.com/quote/KBH" target="_blank" rel="noreferrer noopener">KB Home shares</a> were up nearly 40% year-to-date heading into the print. The homebuilder stock was down 6.10% in after-hours trading at $82.10 at the time of publication Tueday, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.
Photo: Shutterstock.

KB Home Q3 Earnings: Revenue Beat, EPS Beat, Net Orders Flat — 'Variability In Demand Across The Quarter'

KB Home Says 'Net orders were flat with the year ago quarter. We experienced variability in demand across the quarter, with softening in late June through July, as buyers continued to evaluate elevated mortgage interest rates, and general economic concerns were rising'

KB Home shares are trading lower following Q3 financial results.

KB Home Sees FY24 Housing Revenue $6.85B-$6.95B, Average Selling Price Around $490,000, Homebuilding Operating Income Margin Expected at 11.1%-11.2%

KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) reported quarterly earnings of $2.04 per share which beat the analyst consensus estimate of $2.02 by 0.99 percent. The company reported quarterly sales of $1.750 billion which beat the analyst consensus estimate of $1.728 billion by 1.29 percent. This is a 10.27 percent increase over sales of $1.587 billion the same period last year.

Earnings Beats

KB Home Q3 2024 GAAP EPS $2.04 Beats $2.02 Estimate, Sales $1.75B Beat $1.728B Estimate

If you&#39;re looking at this morning&#39;s pre-market indexes and experiencing deja vu, you&#39;re not the only one. Just as Monday morning we saw early trading in the red blossom into the green as the regular trading day started &mdash; on the way to new all-time closing highs on the Dow and S&amp;P 500 &mdash; we have done the same so far Tuesday: the Dow is +5 points, the S&amp;P +62 and the Nasdaq +36 points at this hour.
<h2>Case-Shiller Home Prices Increase, but Miss Estimates</h2>
The definitive measure on home prices is the Case-Shiller index, reported a month in arrears from most other housing data (in this case, July). Overall, we see +5% growth in home price data for mid-summer, but this is lower than the +6% analysts had been expecting, and below the downwardly revised +5.5% the previous month.
Breaking the findings down into the two separate indexes, the 10-city survey saw home prices up +6.8% for July, +5.9% on the 20-city. Among region leaders, New York led the way that month: +8.8%, followed by Las Vegas at +8.2%.
Of course, this data is still well within the high mortgage rate environment that we see coming down rather rapidly, looking ahead. With a lowering Fed funds rate, this will establish lower mortgage rates over time. Considering pent-up demand over the past couple years of high mortgage rates, we may also expect to see more activity in the Existing Home Sales space, which may put pressure on new homebuilders.
<h2>AutoZone Mixed on Q4 Report</h2>
Zacks Rank #4 (Sell)-rated AutoZone (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/azo#NYSE">AZO</a>) posted a substantial miss on its bottom line for fiscal Q4 earnings today, with a reported $48.11 per share short of the $53.31 expected, for a negative earnings surprise of -9.75%. Revenues, however, outperformed slightly, by +0.37% to $6.21 billion in the quarter (and a nice boost from the $5.69 billion posted a year ago).
AutoZone shares are trading down -3.7% on the news, crimping the company&#39;s gains of +17.9% year to date. Even still, the stock is underperforming the S&amp;P 500&#39;s strong growth of +19.9% so far this year.
<h2>What to Expect for Tuesday in the Stock Market</h2>
A half hour after the opening bell, Consumer Confidence for September will be released. Analysts expect a slight uptick to 104 from 103.3 reported a month ago. Especially now with a loosening Fed funds rate cycle underway, we may begin to see the clouds part before consumers surveyed here.
After the closing bell, two notable stocks will be reporting earnings: KB Home (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kbh#NYSE">KBH</a>), the Los Angeles-based homebuilder which specializes in single-family homes first-time homebuyers, and Stitch Fix (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sfix#NASDAQ">SFIX</a>), a 21st century online custom apparel store.
KB Home is expected to have grown by +13.3% on earnings in Q3 and +8.8% on revenues, and is working on a six-straight string of quarterly earnings beats. Fiscal Q4 results for Stitch Fix are expected to be flat on earnings for the quarter, but -15.5% on revenues.
<a href="https://www.zacks.com/stock/news/2340641/case-shiller-home-prices-tick-in-lower-than-expectations?cid=CS-BENZ-FT-economic_highlights-2340641">To read this article on Zacks.com click here.</a>

After the market ended at a fresh record on Monday, traders have positioned themselves for more gains. The index futures are modestly higher early Tuesday. China, the second largest economy in the world, decided to go bold, with the nation&#8217;s central bank announcing a series of stimulatory measures. This has sent commodities soaring, given China is a commodity-guzzling country. China&#8217;s growth has a bearing on the rest of the global economy as it is often called the world&#8217;s factory.
In the domestic market, traders may look ahead to a speech by a Federal Reserve official, a consumer confidence reading and a couple of house prices data. Momentum suggests additional gains but the overbought levels may introduce caution, especially ahead of key inflation data due this week and more labor market data that would roll out next week.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Performance (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>+0.32%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>+0.19%</td>
</tr>
<tr>
<td>Dow</td>
<td>+0.17%</td>
</tr>
<tr>
<td>R2K</td>
<td>+0.44%</td>
</tr>
</tbody>
</table>
</figure>
In premarket trading on Tuesday,&nbsp;the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 0.23% to $570.96 and the&nbsp;Invesco QQQ ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) climbed 0.35% to $484.74, according to&nbsp;<a href="https://benzinga.grsm.io/lxquj26b2sag" target="_blank" rel="noreferrer noopener">Benzinga Pro data</a>.
Cues From Last Session:
U.S. stocks closed Monday&#8217;s session modestly higher although trading was marked by some degree of volatility. The major indices opened higher, as they digested comments from Fed officials, and reacted to S&amp;P Global private sector activity readings, which showed the manufacturing sector contracted more than expected. Minneapolis Fed President Neel Kashkari said in an interview with CNBC&#8217;s Squawk Box that he favored a slowdown in rate cuts.
The indices traded on a nervous note, with the Dow Industrials and the Nasdaq Composite dipping below the unchanged line in the mid-session before making a comeback. The Dow hit new intraday and closing highs, while the S&amp;P 500 Index, despite the mid-session volatility, traded in the green throughout the session and ended at a fresh high.
Among S&amp;P 500 sectors, real estate, utility, material, energy and consumer discretionary stocks advanced solidly. On the other hand, communication services, healthcare and IT stocks experienced modest weakness.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index</td>
<td>Performance (+/)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>+0.14%</td>
<td>17,974.27</td>
</tr>
<tr>
<td>S&amp;P 500 Index</td>
<td>+0.28%</td>
<td>5,718.57</td>
</tr>
<tr>
<td>Dow Industrials</td>
<td>+0.15%</td>
<td>42,124.65</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>-0.34%</td>
<td>2,220.28</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts:
The Fed delivered in line with expectations and it is now time to move to neutral on defensives vs. cyclicals, said Morgan Stanley&#8217;s U.S. Equity Strategist Mike Wilson. The valuation of defensives has reached extended levels and &#8220;we await more clarity on the labor data,&#8221; the strategist said. 
&#8220;Historically, defensives see fairly persistent outperformance 3-12 months following the Fed&#8217;s first cut, but can see initial, modest underperformance in the 1 month following the initial rate reduction,&#8221; Wilson said. The strategist recommended taking profits on the recent outperformance of defensives makes sense in the absence of knowing the outcome of the next labor report. 
Wilson said he continued to have conviction in his recommendation of large caps over small caps and also his bias for high-quality names.
WisdomTree Senior Economist and Wharton Professor Emeritus Jeremy Siegel said valuations across many sectors appear stretched by historical standards, particularly in the technology sector and AI-driven companies. &#8220;This reflects a broader market anticipation of substantial growth driven by technological advancements,&#8221; he said.
&#8220;As AI continues to evolve, it will be crucial to differentiate between companies that are genuinely creating value through innovative AI applications and those whose valuations are inflated by speculative interest.&#8221;
Siegel sees big rate cuts supporting small-cap companies that borrow at short-term borrowing rates as these companies have been the most impacted by the Fed&#8217;s aggressive rate hikes and they have some relatively cheap valuations in the U.S. market.
See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How To Trade Futures</a>
Upcoming Economic Data:
<ul>
<li>Federal Reserve Governor Michelle Bowman is scheduled to speak at 9 a.m. EDT.</li>
<li>The S&amp;P/Case-Shiller and Federal House Finance Agency are due to announce the results of their separate house price surveys for July at 9 a.m. EDT.</li>
<li>The Conference Board will announce its consumer confidence index for September at 10 a.m. EDT, with economists, on average, expecting the index to rise from 103.3 in August to 104 currently.</li>
<li>The Treasury is set to auction two-year notes at 1 p.m. EDT.</li>
</ul>
Stocks In Focus:
<ul>
<li>Liberty Broadband Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LBRDA#NASDAQ">LBRDA</a>) shares soared over 18% <a href="https://www.benzinga.com/premarket">in premarket trading</a> after the company announced that it communicated a counterproposal to the Special Committee of the Board of Directors of Charter Communications, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHTR#NASDAQ">CHTR</a>) regarding its proposed acquisition by the latter.</li>
<li>Snowflake Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNOW#NYSE">SNOW</a>) dropped over 3% following the company&#8217;s announcement concerning a convertible note offering.</li>
<li>Hawaiian Electric Industries, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HE#NYSE">HE</a>) plunged over 11.50% after the company announced a commons stock offering.</li>
<li>AutoZone, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AZO#NYSE">AZO</a>) and THOR Industries, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/THO#NYSE">THO</a>) are among the companies due to <a href="https://www.benzinga.com/calendars/earnings">announce their quarterly results before the market opens.</a></li>
<li>Those reporting after the close include KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>), Progress Software Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PRGS#NASDAQ">PRGS</a>), Stitch Fix, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SFIX#NASDAQ">SFIX</a>) and Worthington Enterprises, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WOR#NYSE">WOR</a>).</li>
</ul>
Commodities, Bonds And Global Equity Markets:
Oil and gold futures climbed, with the latter trading in record territory amid stimulus measures announced by China&#8217;s central bank, and Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is little changed at $63.5K level. The 10-year Treasury note climbed 5.5 points to 3.793%.
Asian stocks, though ending mixed, saw spectacular performances by the Chinese market. The Shanghai Composite Index soared over 4% on stimulus hopes, and this positivity seeped into the Hong Kong market. The Chinese stock market gauge&#8217;s performance marked the biggest one-day gain in over four years. 
The People&#8217;s Bank of China announced a slew of measures to kickstart domestic growth, which has been constrained by an ailing property sector. In a new conference in Beijing, central bank chief Pan Gongsheng said, &#8220;The reserve requirement ratio will be cut by 0.5 percentage points in the near future,&#8221; while he also hinted at reducing the policy interest rate and driving down the market benchmark interest rate to reinvigorate growth.
&#8216;The Taiwanese and South Korean markets also recorded decent gains. The Australian market retreated amid a pause decision by the central bank.
The European markets firmed up early Tuesday.
Read Next:
<ul>
<li>S&amp;P 500 Outpaces Wall Street Projections As Year-End Nears: Will The Rally Hold?</li>
</ul>
Image Via Shutterstock

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Nasdaq, S&P 500 Futures Firm, China's Economic Stimulus Fuels Commodities, Bitcoin Steady: Here's What Traders Should Be Watching Tuesday

With U.S. stock futures trading mixed this morning on Tuesday, some of the stocks that may grab investor focus today are as follows:
<ul>
<li>Wall Street expects AutoZone, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AZO#NYSE">AZO</a>) to report quarterly earnings at $53.53 per share on revenue of $6.22 billion before the opening bell, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>. AutoZone shares fell 0.7% to $3,027 in after-hours trading.</li>
<li>AAR Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AIR#NYSE">AIR</a>) posted better-than-expected results for its first quarter on Monday. The company reported quarterly earnings of 85 cents which beat the analyst consensus estimate of 82 cents per share. AAR shares gained 3.4% to $71.44 in the after-hours trading session.</li>
<li>Analysts expect THOR Industries, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/THO#NYSE">THO</a>) to post quarterly earnings at $1.30 per share on revenue of $2.47 million before the opening bell. THOR Industries shares gained 1.6% to $104.83 in the after-hours trading session.</li>
</ul>
Check out our <a href="https://www.benzinga.com/premarket/">premarket coverage here</a>
<ul>
<li>Snowflake Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNOW#NYSE">SNOW</a>) announced a $2 billion private placement of senior convertible notes. Snowflake shares fell 3.1% to $109.71 in the after-hours trading session.</li>
<li>Analysts are expecting KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) to post quarterly earnings at $2.06 per share on revenue of $1.73 billion. The company will release earnings after the closing bell. KB Home shares gained 1.1% to close at $88.20 on Monday.</li>
</ul>
Check This Out:
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<li><a href="https://www.benzinga.com/news/24/09/40980672/top-3-financials-stocks-that-may-plunge-in-september">Top 3 Financial Stocks That May Plunge In September</a></li>
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Photo courtesy: Shutterstock

AutoZone, Thor Industries And 3 Stocks To Watch Heading Into Tuesday

Homebuilder KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) could provide a look at how healthy the sector is and what the 2024 election and a recent <a href="https://www.benzinga.com/topic/interest-rates">Federal Reserve rate cut</a> mean for the company when third-quarter earnings are reported Tuesday after market close.
Earnings Estimates: Analysts expect KB Home to report third-quarter revenue of $1.73 billion, up from $1.59 billion in last year's third quarter, according to data<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent092324&amp;t=be2bearmibe3na1"> from Benzinga Pro.</a>
The company has beaten analyst revenue estimates in six straight quarters and seven of the last 10 quarters.
Analysts expect the company to report earnings per share of $2.06 compared to $1.80 in last year's third quarter. The company has beaten earnings estimates in six straight quarters and eight of the last 10 quarters.
The earnings report comes as KB Home shares are up 42% year-to-date in 2024, as seen on the<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent092324&amp;t=be2bearmibe3na1"> Benzinga Pro chart </a>below.
<figure class="wp-block-image size-full"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent092324&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="993" height="499" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/23143338/Screenshot-188.png" alt="" class="wp-image-561762" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/23143338/Screenshot-188.png 993w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/23143338/Screenshot-188-300x151.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/23143338/Screenshot-188-768x386.png 768w" sizes="(max-width: 993px) 100vw, 993px" /></a></figure>
Analyst Ratings: Several analysts have upgraded their ratings and price targets on KB Home stock ahead of the earnings report. Here are the most recent analyst ratings on the stock.
<ul>
<li>Bank of America: Maintained Neutral rating, raised price target from $75 to $90.</li>
<li>Wedbush: Reiterated Neutral rating with a $67 price target.</li>
<li>Wells Fargo: Maintained Equal Weight rating, raised price target from $70 to $80.</li>
<li>RBC Capital: Downgraded from Sector Perform to Underperform with $70 price target.</li>
<li>Goldman Sachs: Maintained Neutral rating, raised price target from $72 to $82.</li>
</ul>
Read Also: <a href="https://www.benzinga.com/news/earnings/24/09/40979493/how-to-earn-500-a-month-from-kb-home-stock-ahead-of-q3-earnings">How To Earn $500 A Month From KB Home Stock Ahead Of Q3 Earnings</a>
Key Items to Watch: KB Home's earnings report comes with several potential catalysts for the home building sector that will be closely watched going forward.
The Federal Reserve recently <a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40926026/federal-reserve-delivers-bold-0-5-rate-cut-signals-further-easing-ahead">announced a rate cut</a>, and more reductions are anticipated. The trickle-down effect will see mortgage rates drop. Recent declines in mortgage rates have led to increases in refinancing and more consumers looking for new homes.
KB Home is expected to address, or field analyst questions on, how rate cuts could impact demand and the outlook for new home supply.
"Buyers remained resilient in their desire for homeownership despite the volatility in mortgage interest rates. Our pace of monthly net orders per community was one of our highest second quarter levels in many years," KB Home CEO Jeffrey Mezger said of <a href="https://www.benzinga.com/news/earnings/24/06/39390139/kb-home-shares-climb-after-better-than-expected-q2-results">second-quarter results.</a>
The earnings report comes less than two months before the 2024 presidential election. Vice President Kamala Harris recently highlighted plans to <a href="https://www.benzinga.com/general/politics/24/08/40424431/harris-warns-trump-tax-plan-will-devastate-americans-vows-to-go-after-bad-actors-behind-food-pri">build millions of homes </a>and support first-time homebuyers as key initiatives to boost the economy.
Under these policies, the company could benefit from a Harris presidency, and commentary could show whether the stock could gain value depending on the 2024 election outcome.
KBH Price Action: KB Home shares trade at $88.15 on Monday, versus a 52-week trading range of $42.11 to $89.70.
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<li><a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/09/40928301/interest-rates-in-free-fall-what-it-means-for-mortgages-credit-cards-and-your-wallet-a">Interest Rates In Free-Fall: What It Means For Mortgages, Credit Cards And Your Wallet As The Federal Reserve Springs Into Action For First Time In 4 Years</a></li>
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Image created using artificial intelligence via Midjourney.

KB Home Q3 Earnings Preview: Analysts Anticipate Revenue Growth — Will Investors Hear About Rate Cuts, 2024 Election?

KB Home (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kbh#NYSE">KBH</a>) is slated to report third-quarter fiscal 2024 results (ended Aug. 31) on Sept. 24, after the closing bell.
In the last reported quarter, KB Home&#39;s earnings and revenues beat the Zacks Consensus Estimate by 20.8% and 4.3%, respectively. On a year-over-year basis, earnings increased 11% on 3.4% lower revenues.
The company&#39;s earnings topped analysts&#39; expectations in 31 of the trailing 34 quarters.
<div class="chart_embed">
<h3>KB Home Price and EPS Surprise</h3>
<img alt="KB Home Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/9d/1727092560.png" style="height:263px; width:538px" title="" />
KB Home price-eps-surprise | KB Home Quote
</div>
<h2>How Are Estimates Placed for KBH?</h2>
For the quarter to be reported, the Zacks Consensus Estimate for earnings has remained unchanged at $2.04 per share over the past 60 days. The projected figure indicates an increase of 13.3% from the year-ago quarter&#39;s earnings of $1.80 per share.
The consensus estimate for revenues is pegged at $1.73 billion, implying growth of 8.8% from the prior-year quarter.
<h2>What the Zacks Model Unveils for KB Home</h2>
Our proven model predicts an earnings beat for KB Home this time around. This is because a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Earnings ESP: KB Home has an Earnings ESP of +0.08%.
Zacks Rank: KB Home currently has a Zacks Rank #3.
<h2>Factors to Shape KBH&#39;s Q3 Results</h2>
Revenues: KB Home&#39;s top line in third-quarter fiscal 2024 is likely to have increased, given higher Housing revenues primarily attributable to growth in deliveries and favorable pricing. The company has been benefiting from the strong buyer demand, particularly for built-to-order homes, despite the volatility in mortgage rates.
The company&#39;s focus on personalization and its ability to offer both quick move-in and personalized homes might have helped the company drive growth. KB Home has also been utilizing mortgage buydowns as a key component of its strategy to maintain strong sales amid fluctuating mortgage rates.
Although the company has not provided an explicit forecast for its third-quarter absorption pace, the positive momentum from the fiscal second quarter &mdash; driven by strong demand, shorter build times, and strategic pricing &mdash; suggests that the absorption pace is expected to remain solid in the fiscal third quarter. The company is focusing on balancing pace and pricing to optimize margins while still driving volume.
The company expects housing revenues in the range of $1.65-$1.75 billion compared with the year-ago figure of $1.57 billion. KBH anticipates the average selling price&nbsp;to be $482,000, indicating an increase from $466,300 reported a year ago.
Our model projects housing revenues to grow 9.1% year over year to $1.72 billion in the quarter. We expect ASP to increase 3.3% to $481,500. We expect total deliveries in the quartet to grow 5.6% year over year.
Margins: Although initiatives like the Returns-Focused Growth Plan and Built-to-Order approach are positives, increasing construction and labor costs are likely to put pressure on the bottom line.
The company anticipates that the housing gross margin for the third quarter of 2024 will decline between 21% and 21.4% (compared with 21.5% in the year-ago quarter). This projection accounts for the concessions provided to homebuyers in the latter half of last year, which were influenced by the challenging market conditions at that time and is expected to close in this quarter.
Selling, general &amp; administrative expenses (SG&amp;A), as a percentage of housing revenues, are likely to be 9.9%-10.3%. We expect SG&amp;A expenses to be 10.2% in the quarter, the same as the year-ago figure.
The company expects adjusted operating margin between 10.8% and 11.4%. Our model predicts the adjusted operating margin to be 10.9% in the quarter, down from 11.4% a year ago.
The company expects an effective tax rate of approximately 24% for the quarter.
Orders &amp; Backlogs: We anticipate that new orders will increase to 3,357 units, up 8.4% from the previous year. With a limited supply of pre-owned homes available, homebuyers are turning their attention to builders who have increased their construction efforts to meet the rising demand. KB Home, along with other homebuilding companies, has benefited significantly from this trend despite ongoing challenges.
We expect the backlog to be 6,062 units, implying a decline from 7,008 units reported in the prior-year quarter.
Meanwhile, our model predicts Financial Services revenues to be $8.3 million for the fiscal third quarter. We expect Financial Services pretax income to be $12.2 million in the quarter compared with the year-ago quarter&#39;s figure of $9.9 million.
<h2>KB Home&#39;s Price Performance &amp; Valuation</h2>
KBH&#39;s stock has exhibited an upward movement in the past six months.&nbsp;The stock has gained 27.5%, outperforming the Zacks Building Products - Home Builders industry&#39;s rise of 16.4% in the same time frame.
The company has also outperformed its peer companies like Meritage Homes Corporation&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mth#NYSE">MTH</a>) (up 21.6% in the past six months) and Taylor Morrison Home Corporation&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tmhc#NYSE">TMHC</a>) (up 16%).
<h2>6-Month Price Performance of KBH Stock</h2>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/2d/78791.jpg?v=1075297864" />
Image Source: Zacks Investment Research
Technical indicators suggest continued strong performance for KBH. Notably, the 50-day SMA continues to read higher than the 200-day SMA, signaling the bullish trend.
<h2>KBH Stock Trades Above 50 and 200-Day Moving Average</h2>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/55/78793.jpg?v=505003855" />
Image Source: Zacks Investment Research
KBH stock is trading at a discount compared with the industry and slightly higher than its median. Despite the company&#39;s shares&#39; outperformance compared to its industry, KBH&#39;s current valuation is still considered undervalued. This might imply that the market has not yet fully recognized or priced in the company&#39;s potential growth prospects or earnings potential. The company is also trading currently at a discount compared to the industry&#39;s big shots like PulteGroup, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/phm#NYSE">PHM</a>).
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/6c/78792.jpg?v=689735686" />
Image Source: Zacks Investment Research
<h2>How to Play KB Home Stock?</h2>
Investors may want to hold KB Home stock due to its resilience in a challenging housing market, driven by strategic pricing and effective inventory management. Despite industry headwinds like expensive mortgages and slowing demand, KB Home has maintained strong financial performance through a focus on affordability and margin optimization. The company&#39;s BTO model has contributed to positive inventory dynamics, supporting confidence in their margin guidance for the second half of 2024.
While the recent Federal Reserve rate cut to 4.75%-5% may provide some market relief, its full impact on homebuilding remains uncertain, as mortgage rates may have already factored in the anticipated cut. Additionally, rising land costs, competition from the resale market, and supply chain disruptions pose challenges to the company&#39;s growth potential.
Though KB Home&#39;s stock has shown strength with a solid 50-day moving average and discounted valuation, a lack of upward estimate revisions in the past two months signals limited near-term upside. Investors might consider holding the stock while waiting for more favorable market conditions and further clarity on KB Home&#39;s long-term performance.
KB Home&#39;s operational resilience and strategic focus in a difficult environment make it a stock worth holding, although potential investors may opt for caution until clearer signals of stability emerge in both the company&#39;s performance and broader market trends.
<a href="https://www.zacks.com/stock/news/2339964/should-you-buy-sell-or-hold-kb-home-before-q3-earnings?cid=CS-BENZ-FT-analyst_blog|earnings_preview-2339964">To read this article on Zacks.com click here.</a>

Technicals

TMHC

Should You Buy, Sell, or Hold KB Home Before Q3 Earnings?

KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) will release earnings results for its third quarter, after the <a href="https://www.benzinga.com/quote/KBH/earnings">closing bell on Tuesday</a>.
Analysts expect the Los Angeles-based company to report quarterly earnings at $2.06 per share. That&#8217;s up from $1.80 per share in the year-ago period. KB Home projects quarterly revenue of $1.73 billion, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.
On Sept. 19, Bank of America Securities analyst Rafe Jadrosich maintained KB Home with a Neutral rating and raised the price target from $75 to $90.
With the recent buzz around KB Home, some investors may be eyeing potential gains from the company's dividends. As of now, KB Home has a dividend yield of 1.15%. That&#8217;s a quarterly dividend amount of 25 cents a share ($1.00 a year).
To figure out how to earn $500 monthly from KB Home, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by KB Home's $1.00 dividend: $6,000 / $1.00 = 6,000 shares
So, an investor would need to own approximately $523,380 worth of KB Home, or 6,000 shares to generate a monthly dividend income of $500.
Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $1.00 = 1,200 shares, or $104,676 to generate a monthly dividend income of $100.
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.
For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).
Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).
Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.
KBH Price Action: Shares of KB Home fell 2.6% to close at $87.23 on Friday.
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<iframe loading="lazy" title="How to Find Dividend Stocks: Scan, Analyze, and Capture with Benzinga Pro" width="500" height="281" src="https://www.youtube.com/embed/pVF0O2lsEH4?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
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Read More: 
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Image: Shutterstock

Long Ideas

How To Earn $500 A Month From KB Home Stock Ahead Of Q3 Earnings

KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) will release earnings results for its third quarter, after the closing <a href="https://www.benzinga.com/quote/KBH/earnings">bell on Tuesday, Sept. 24</a>.
Analysts expect the Los Angeles, California-based company to report quarterly earnings at $2.06 per share, up from $1.80 per share in the year-ago period. KB Home is projected to post quarterly revenue of $1.73 billion, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.
On July 18, the company's board of directors declared a quarterly cash dividend of 25 cents per share on the company&#8217;s common stock.
KB Home shares fell 2.7% to close at $87.23 on Friday.
Benzinga readers can access the latest analyst ratings on the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/09/28888638/exclusive-study-finds-benzinga-analyst-ratings-data-yields-market-beating-strategie">Analyst Stock Ratings</a> page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let's have a look at how Benzinga's most-accurate <a href="https://www.benzinga.com/quote/TCOM/analyst-ratings">analysts have rated the company</a> in the recent period.
<ul>
<li><a href="https://www.benzinga.com/analyst-stock-ratings/analyst/596530e4988ca80001209fc0/rafe-jadrosich">B of A Securities analyst Rafe Jadrosich</a> maintained a Neutral rating and raised the price target from $75 to $90 on Sept. 19. This analyst has an accuracy rate of 72%.</li>
<li>Wedbush analyst Jay McCanless reiterated a Neutral rating with a price target of $67 on Sept. 12. This analyst has an accuracy rate of 84%.</li>
<li><a href="https://www.benzinga.com/analyst-stock-ratings/analyst/63b6dd8f392e5e0001e663df/sam-reid">Wells Fargo analyst Sam Reid</a> maintained an Equal-Weight rating and raised the price target from $70 to $80 on Sept. 9. This analyst has an accuracy rate of 85%.</li>
<li>RBC Capital analyst Mike Dahl downgraded the stock from Sector Perform to Underperform with a price target of $70 on Sept. 5. This analyst has an accuracy rate of 74%.</li>
<li><a href="https://www.benzinga.com/analyst-stock-ratings/analyst/594d093f988ca8000150db5a/susan-maklari">Goldman Sachs analyst Susan Maklari</a> maintained a Neutral rating and increased the price target from $72 to $82 on Sept. 3. This analyst has an accuracy rate of 63%.</li>
</ul>
Considering buying KBH stock? Here&#8217;s what analysts think: 
<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="510" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/23033739/image-170-1024x510.png" alt="" class="wp-image-560499" style="width:665px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/23033739/image-170-1024x510.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/23033739/image-170-300x150.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/23033739/image-170-768x383.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/23033739/image-170.png 1348w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
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KB Home Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

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LOVE

LSEA

ROCK

Shares of housing-related stocks are trading higher after the Fed policy decision to cut rates by 50 basis points, which could help curb housing unaffordability and increase demand.

B of A Securities analyst Rafe Jadrosich maintains KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) with a Neutral and raises the price target from $75 to $90.

B of A Securities Maintains Neutral on KB Home, Raises Price Target to $90

Investors are always looking for stocks that are poised to beat at earnings season and KB Home&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kbh#NYSE">KBH</a>)&nbsp;may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because KB Home is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings &mdash; with the most up-to-date information possible &mdash; is a pretty good indicator of some favorable trends underneath the surface for KBH in this report.
In fact, the Most Accurate Estimate for KBH for the to-be-reported quarter is currently pegged higher than the broader Zacks Consensus Estimate of $2.04 per share. This suggests that analysts have very recently bumped up their estimates for KBH, giving the stock a Zacks Earnings ESP of +0.08% heading into earnings season.
<h2>KB Home Price and EPS Surprise</h2>
<div class="chart_embed">
<img alt="KB Home Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/2a/1726743013.png" style="height:266px; width:538px" title="" />
KB Home price-eps-surprise | KB Home Quote
</div>
<h2>Why is this Important?</h2>
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns.
Given that KBH has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings.
Clearly, recent earnings estimate revisions suggest that good things are ahead for KB Home, and that a beat might be in the cards for the upcoming report.
<a href="https://www.zacks.com/stock/news/2338358/why-kb-home-kbh-might-surprise-this-earnings-season?cid=CS-BENZ-FT-tale_of_the_tape|earnings_surprise-2338358">To read this article on Zacks.com click here.</a>

Why KB Home Might Surprise This Earnings Season

Wedbush analyst Jay McCanless reiterates KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) with a Neutral and maintains $67 price target.

Reiteration

Wedbush Reiterates Neutral on KB Home, Maintains $67 Price Target

KB Home stock drops after Q3 earnings miss amid flat orders

Earnings Snapshot: KB Home beats on topline but EPS falls short of estimates in FQ3

KB Home (KBH) Q3 2024 Earnings Call Transcript

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There's a lot to be optimistic about in the Consumer Cyclical sector as 2 analysts just weighed in on KB Home (KBH – Research Report) and AutoZone ...

Analysts Offer Insights on Consumer Cyclical Companies: KB Home (KBH) and AutoZone (AZO)

Rafe Jadrosich, an analyst from Bank of America Securities, reiterated the Hold rating on KB Home (KBH – Research Report). The associated price tar...

KB Home Stands Firm at $90 Price Objective Amid Mixed Fiscal Signals and Hold Rating

KB Home: Orders Disappoint In Q3, Limiting Upside

In a report released today, Stephen Kim from Evercore ISI reiterated a Buy rating on KB Home (KBH – Research Report), with a price target of $96.00...

Evercore ISI Sticks to Its Buy Rating for KB Home (KBH)

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Top homebuilder and housing stocks as mortgage rates fall

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Press Releases

KB Home Announces the Grand Opening of Its Newest Community Within the Desirable Villa Ticino Master Plan in Manteca, California

KB Home Announces the Grand Opening of Its Newest Community in Graham, North Carolina

KB Home Announces the Grand Opening of Its Newest Community Within the Desirable Crossroads West Master Plan in Riverbank, California

KB Home Announces the Grand Opening of Its Newest Community in Riverside, California

KB Home Announces the Grand Opening of Its Newest Community in Popular Georgetown, Texas

KB Home Announces the Grand Opening of Its Newest Community at Farmlore, a Premier New Master Plan in Brighton, Colorado

KB Home to Release 2024 Third Quarter Earnings on September 24, 2024

KB Home Announces a Rare Opportunity to Own a New Townhome in a Prime Long Beach, California Location Close to Popular Beaches

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KB Home (KBH) Forecast

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