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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KB Home Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

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Investors are always looking for stocks that are poised to beat at earnings season and KB Home (NYSE: KBH) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.

Why KB Home Might Surprise This Earnings Season

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Homebuilding Stocks On Investors&#39; Radar After Kamala Harris Reveals Plan To Boost Housing Market

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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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>

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

Wells Fargo analyst Sam Reid maintains KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) with a Equal-Weight and raises the price target from $70 to $80.

Wells Fargo Maintains Equal-Weight on KB Home, Raises Price Target to $80

RBC Capital analyst Mike Dahl downgrades KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) from Sector Perform to Underperform and announces $70 price target.

Downgrades

RBC Capital Downgrades KB Home to Underperform, Announces $70 Price Target

KB Home's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) short percent of float has risen 7.14% since its last report. The company recently reported that it has 5.97 million shares sold short, which is 12.6% of all regular shares that are available for trading. Based on its trading volume, it would take traders 5.32 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>KB Home Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1725461111_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for KB Home has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing KB Home's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, KB Home's peer group average for short interest as a percentage of float is 5.51%, which means the company has more short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

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(KBH) - Analyzing KB Home's Short Interest

Goldman Sachs analyst Susan Maklari 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 $72 to $82.

Goldman Sachs Maintains Neutral on KB Home, Raises Price Target to $82

Shares of homebuilders are trading higher in sympathy with Toll Brothers, which reported better-than-expected Q3 financial results and issued guidance above estimates.

Vice President Kamala Harris&#8217; campaign disclosed <a href="https://www.benzinga.com/news/24/08/40411555/ahead-of-kamala-harris-first-economic-policy-speech-in-north-carolina-campaign-provides-sneak-peek-f">policy proposals regarding the residential housing market </a>ahead of the Democratic Party candidate&#8217;s unveiling of her economic policy at an event in the key swing state of North Carolina. 
Harris will launch a four-year plan to bring down housing costs for working families and also alleviate housing shortages. Among the policy proposals are:
<ul>
<li>Construction of three million new housing units to plug in the shortage in housing supply in the first four years.</li>
<li>Expanding the existing tax incentives for builders to build affordable rental housing.</li>
<li>Offering first-ever tax incentives for building starter homes.</li>
<li>Setting up a new federal fund to spur innovative housing construction.</li>
<li>A $25,000 down-payment support for first-time homeowners.</li>
</ul>
The Harris campaign also looks to clamp down on corporate and major landlords by stopping rent-setting data firms from price fixing to raise rents by double digits and forbidding Wall Street investors from buying up and marking up homes in bulk.
Here&#8217;s how the homebuilder stocks are trading in premarket trading, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data</a>:
<ul>
<li>KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) climbed 3.2% to $82.65.</li>
<li>Toll Brothers, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TOL#NYSE">TOL</a>) gained 2.1% to $131.64.</li>
<li>D.R. Horton, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) added 0.30% to $175.81.</li>
<li>PulteGroup, Inc. (PHM) rose 0.39% to $123.</li>
</ul>
See Also:&nbsp;<a href="https://www.benzinga.com/money/best-home-builder-stocks" target="_blank" rel="noreferrer noopener">Best Home Builder Stocks</a>
Image generated using Midjourney

Homebuilding Stocks On Investors' Radar After Kamala Harris Reveals Plan To Boost Housing Market

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Third Point LLC Q2 2024 13F Shows New Positions Include 1.95M Apple Shares, 2.8M Amphenol Shares, 2.1M KB Home Shares, 1.37M Live Nation Shares, 275K Micron Shares, 240K Roper Technologies Shares, 150K MSCI Shares, 150K Dynatrace Shares, 80K ASML Shares, 650K CRH Shares, And 625K Hess Shares

KB Home (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kbh#NYSE">KBH</a>) has recently been on Zacks.com&#39;s list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock&#39;s performance in the near future.
Shares of this homebuilder have returned +8% over the past month versus the Zacks S&amp;P 500 composite&#39;s -4.5% change. The Zacks Building Products - Home Builders industry, to which KB Home belongs, has gained 18.4% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company&#39;s business prospects usually make its stock &#39;trending&#39; and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
<h2>Revisions to Earnings Estimates</h2>
Here at Zacks, we prioritize appraising the change in the projection of a company&#39;s future earnings over anything else. That&#39;s because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors&#39; interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, KB Home is expected to post earnings of $2.04 per share, indicating a change of +13.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $8.38 points to a change of +19.2% from the prior year. Over the last 30 days, this estimate has changed +0.9%.
For the next fiscal year, the consensus earnings estimate of $8.99 indicates a change of +7.2% from what KB Home is expected to report a year ago. Over the past month, the estimate has changed +0.9%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock&#39;s near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for KB Home.
The chart below shows the evolution of the company&#39;s forward 12-month consensus EPS estimate:
<h2>12 Month EPS</h2>
<h2>Revenue Growth Forecast</h2>
While earnings growth is arguably the most superior indicator of a company&#39;s financial health, nothing happens as such if a business isn&#39;t able to grow its revenues. After all, it&#39;s nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it&#39;s important to know a company&#39;s potential revenue growth.
In the case of KB Home, the consensus sales estimate of $1.73 billion for the current quarter points to a year-over-year change of +8.9%. The $6.84 billion and $7.41 billion estimates for the current and next fiscal years indicate changes of +6.7% and +8.3%, respectively.
<h2>Last Reported Results and Surprise History</h2>
KB Home reported revenues of $1.71 billion in the last reported quarter, representing a year-over-year change of -3.1%. EPS of $2.15 for the same period compares with $1.94 a year ago.
Compared to the Zacks Consensus Estimate of $1.64 billion, the reported revenues represent a surprise of +4.33%. The EPS surprise was +20.79%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
<h2>Valuation</h2>
No investment decision can be efficient without considering a stock&#39;s valuation. Whether a stock&#39;s current price rightly reflects the intrinsic value of the underlying business and the company&#39;s growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company&#39;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&#39;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 An 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.
<h2>Conclusion</h2>
The facts discussed here and much other information on Zacks.com might help determine whether or not it&#39;s worthwhile paying attention to the market buzz about KB Home. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
<a href="https://www.zacks.com/stock/news/2319851/is-trending-stock-kb-home-kbh-a-buy-now?cid=CS-BENZ-FT-tale_of_the_tape|most_searched_stocks_v1-2319851">To read this article on Zacks.com click here.</a>

Is Trending Stock KB Home a Buy Now?

KB Home's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) short percent of float has risen 21.06% since its last report. The company recently reported that it has 7.02 million shares sold short, which is 14.83% of all regular shares that are available for trading. Based on its trading volume, it would take traders 4.83 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>KB Home Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1722950111_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for KB Home has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing KB Home's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, KB Home's peer group average for short interest as a percentage of float is 9.69%, which means the company has more short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Peering Into KB Home's Recent Short Interest

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Shares of household durable companies are trading lower amid overall market weakness on US economic concerns.

Seaport Global analyst Kenneth Zener downgrades KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) from Neutral to Sell and announces $65 price target.

Seaport Global Downgrades KB Home to Sell, Announces $65 Price Target

M/I Homes, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mho#NYSE">MHO</a>) is scheduled to report second-quarter 2024 results on Jul 30, 2024, before market open.
In the last reported quarter, the company&#39;s earnings and revenues topped the Zacks Consensus Estimate by 20.7% and 4.1%, respectively. On a year-over-year basis, earnings and revenues increased 31% and 5%, respectively.
This homebuilding company&#39;s earnings topped the consensus mark in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 19%.
<h3>Trend in Estimates</h3>
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained unchanged at $4.79 in the past 30 days. The estimated figure indicates a 16.3% decline from $4.12 per share reported in the year-ago quarter.
<div class="chart_embed">
<h3>M/I Homes, Inc. Price and EPS Surprise</h3>
<img alt="M/I Homes, Inc. Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/db/1721913300.png" style="height:263px; width:545px" title="" />
M/I Homes, Inc. price-eps-surprise | M/I Homes, Inc. Quote
The consensus mark for revenues is pegged at $1.05 billion, suggesting a 3.7% rise from the year-ago quarter&#39;s reported figure.
</div>
<h3>Factors to Note</h3>
Despite challenging affordability conditions due to higher mortgage rates, M/I Homes&#39; second-quarter earnings and net sales are likely to have increased year over year due to strong demand for entry-level and first-move-up homes. The lack of existing homes for sale is likely to have boosted the top line. MHO&#39;s focus on single-family homes and attached townhomes for various buyer segments, including first-time, millennial, move-up, empty-nester and luxury buyers, is likely to have driven growth.
Also, improved construction cycle time and solid land acquisitions and development strategy are likely to have helped it partially offset the negative impacts of the headwinds mentioned above.
The Zacks Consensus Estimate for Homebuilding revenues (which contributed 97.7% to total revenues in 2023) of $1,024.9 million suggests a rise from $988.7 million reported a year ago.
The company expects homes delivered in the second quarter to be in line with the first quarter (homes delivered totaled 2,158 units), with a slight increase in the second half of the year. The consensus mark for homes delivered is pegged at 2,170 units, indicating a rise from 1,990 units a year ago. The same for the average home closing price is likely to be $528,380, suggesting a rise from $493,000 reported a year ago.
The Zacks Consensus Estimate for new contracts is pegged at 2,307 homes, calling for an increase from 2,197 homes reported a year ago.
The Zacks Consensus Estimate for backlog is pinned at 3,528 homes, suggesting a rise from 3,508 homes reported in the prior year.
The same for Financial Services (contributed 2.3% to total revenues in 2023) revenues is pinned at $26.6 million, suggesting a rise from the year-ago level of $25.3 million.
However, higher material and labor costs, along with uncertain economic conditions, are likely to have negatively impacted operations and hurt margins in the to-be-reported quarter. Elevated selling expenses and greater headcount and incentive compensation are anticipated to have strained MHO&#39;s profitability.
<h3>What the Zacks Model Says</h3>
Our proven model does not conclusively predict an earnings beat for MHO this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%.
Zacks Rank: It currently carries a Zacks Rank #3.
<h3>Stocks Poised to Beat on Earnings</h3>
Here are some companies in the Zacks Construction sector that, according to our model, have the right combination of elements to post an earnings beat in the quarter to be reported.
Dycom Industries (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dy#NYSE">DY</a>)&nbsp;currently has an Earnings ESP of +4.43 and a Zacks Rank of 2.
DY&#39;s earnings topped the consensus mark in three of the last four quarters and missed on one occasion, with the average surprise being 30.2%. Earnings for the to-be-reported quarter are expected to increase 7.4% from the year-ago quarter&#39;s reported figure.
KB Home (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kbh#NYSE">KBH</a>) currently has an Earnings ESP of +0.17% and a Zacks Rank of 1.
KBH&#39;s earnings for the to-be-reported quarter are expected to grow 13.3% from the year-ago quarter&#39;s reported figure. The company posted better-than-expected earnings in all the last four quarters, the average surprise being 18.4%.
AAON, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aaon#NASDAQ">AAON</a>) currently has an Earnings ESP of +0.94% and a Zacks Rank of 2.
AAON&#39;s earnings for the to-be-reported quarter are expected to decline 1.8% from the year-ago quarter&#39;s reported figure. The company reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 9.7%.
<a href="https://www.zacks.com/stock/news/2309140/m-i-homes-mho-gears-up-for-q2-earnings-what-to-expect?cid=CS-BENZ-FT-analyst_blog|earnings_preview-2309140">To read this article on Zacks.com click here.</a>

AAON

M/I Homes Gears Up for Q2 Earnings: What to Expect?

NVR, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nvr#NYSE">NVR</a>) reported mixed second-quarter 2024 results, with earnings missing the Zacks Consensus Estimate while Homebuilding revenues surpassed the same. On the other hand, both metrics increased on a year-over-year basis.
The upside was backed by improved demand trends, which resulted in higher settlements. Although the cancellation rate increased during the quarter, growth in new orders and increased average selling price (&quot;ASP&quot;) of new orders are encouraging for the company&#39;s prospects.
Shares of this leading homebuilder inched down 0.5% during the Jul 23 trading session.
<h3>Inside the Numbers</h3>
The company reported earnings of $120.69 per share, which marginally missed the Zacks Consensus Estimate of $121.65 by 0.8%. The reported figure increased 3.6% from the prior-year quarter&#39;s earnings of $116.54 per share.
<div class="chart_embed">
<h3>NVR, Inc. Price, Consensus and EPS Surprise</h3>
<img alt="NVR, Inc. Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/a0/1721831138.png" style="height:265px; width:605px" title="" />
NVR, Inc. price-consensus-eps-surprise-chart | NVR, Inc. Quote
Homebuilding revenues of $2.55 billion topped the consensus mark of $2.48 billion by 2.7%. Consolidated revenues (Homebuilding &amp; Mortgage Banking fees combined) amounted to $2.61 billion, up 12% on a year-over-year basis.
</div>
<h3>Segment Details</h3>
Homebuilding: The segment&#39;s revenues of $2.55 billion grew 12% from the year-ago quarter. Settlements in the quarter were up 11% year over year to 5,659 units. Our model predicted settlements to increase 8% year over year to 5,492 units. The ASP for the settlements was $450,200, flat year over year. Our estimate was in line with the reported value for the metric.
The gross margin contracted 70 basis points year over year to 23.6%. Our estimate for the metric was 24.3%.
New orders increased 3% from the prior-year quarter&#39;s levels to 6,067 units. The ASP of new orders increased 3% from the prior-year quarter&#39;s figure to $458,800. Our model predicted the ASP of new orders to increase 2.6% year over year to $458,700. The cancellation rate was 12.9%, up from 10.9% a year ago.
On a unit basis, backlog at the end of Jun 30, 2024, improved 3% from the prior-year quarter&#39;s figure to 11,597 homes and rose 6% on a dollar basis to $5.45 billion.
The average active communities were 433 during the quarter, up from 426 reported a year ago.
Mortgage Banking: Mortgage banking fees increased 18.3% year over year to $64.6 million. Mortgage closed loan production totaled $1.53 billion, up 11% year over year. The capture rate was flat year over year at 86%.
<h3>Financials</h3>
As of Jun 30, 2024, NVR had cash and cash equivalents for Homebuilding and Mortgage Banking of $2.44 billion and $31.1 million compared with $3.13 billion and $36.4 million, respectively, at 2023-end.
During the second quarter, NVR repurchased 83,168 shares for $639 million. At June 2024 end, the company had 3,090,266 shares outstanding.
<h3>Zacks Rank &amp; Recent Peer Releases</h3>
NVR currently has a Zacks Rank #2 (Buy).
PulteGroup Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/phm#NYSE">PHM</a>) reported stellar results for the second quarter of 2024, wherein earnings and revenues handily beat the Zacks Consensus Estimate. On a year-over-year basis, the top and bottom lines increased.
PHM saw significant benefits from key factors, which drove its success. The company&#39;s balanced operating model resulted in increases in closings, average sales price and gross margin, which collectively led to a 19.3% increase in earnings per share. Effective management of sales price, pace and starts on a community-by-community basis enabled the company to achieve high returns on invested capital and equity, evidenced by a 27.1% return on equity over the past 12 months.
D.R. Horton, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dhi#NYSE">DHI</a>) reported third-quarter fiscal 2024 (ended Jun 30, 2024) results, with earnings and revenues surpassing Zacks Consensus Estimate. On a year-over-year basis, both the top and bottom lines increased.
DHI now expects consolidated revenues in the range of $36.8-$37.2 billion versus the prior expectation of $36.7-$37.7 billion. The company reported $35.5 billion in revenues in fiscal 2023. Homes closed are anticipated within 90,000-90,500 units versus 89,000-91,000 units expected earlier.
KB Home (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kbh#NYSE">KBH</a>) reported impressive results for the second quarter of fiscal 2024 (ended May 31, 2024). Both earnings and revenues beat the Zacks Consensus Estimate. Shares of this leading homebuilder rose 2.2% in the after-market trading session on Jun 18.
On an encouraging note, KB Home&#39;s earnings increased on a year-over-year basis despite a revenue decline. Leveraging the advantages of its Built to Order model, which provides buyers with choices, flexibility and affordability, the company is confident in its ability to effectively navigate potential fluctuations in housing market conditions.
<a href="https://www.zacks.com/stock/news/2308092/nvr-stock-down-on-q2-earnings-miss-homebuilding-revenues-top?cid=CS-BENZ-FT-analyst_blog|earnings_article-2308092">To read this article on Zacks.com click here.</a>

Earnings Misses

NVR Stock Down on Q2 Earnings Miss, Homebuilding Revenues Top

Investors with a lot of money to spend have taken a bearish stance on KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>).
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with KBH, it often means somebody knows something is about to happen.
So how do we know what these investors just did? 
Today, <a href="https://pro.benzinga.com/?utm_source=insights">Benzinga</a>'s options scanner spotted 8 uncommon options trades for KB Home.
This isn't normal.
The overall sentiment of these big-money traders is split between 37% bullish and 50%, bearish.
Out of all of the special options we uncovered, 2 are puts, for a total amount of $131,010, and 6 are calls, for a total amount of $299,837.
<h3>Predicted Price Range</h3>
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $70.0 to $80.0 for KB Home over the last 3 months. 
<h3>Analyzing Volume &amp; Open Interest</h3>
In terms of liquidity and interest, the mean open interest for KB Home options trades today is 908.25 with a total volume of 1,727.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for KB Home's big money trades within a strike price range of $70.0 to $80.0 over the last 30 days.
<h3>KB Home Option Activity Analysis: Last 30 Days</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1721226729_0.png" alt="Options Call Chart" />
<h3>Significant Options Trades Detected:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th style="text-align: right;">Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>KBH</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>07/19/24</td>
<td>$12.2</td>
<td>$11.7</td>
<td>$11.87</td>
<td>$70.00</td>
<td>$88.1K</td>
<td>1.1K</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>KBH</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>08/16/24</td>
<td>$4.2</td>
<td>$4.1</td>
<td>$4.2</td>
<td>$80.00</td>
<td>$73.0K</td>
<td>1.3K</td>
<td style="text-align: right;">300</td>
</tr>
<tr>
<td>KBH</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/17/25</td>
<td>$6.9</td>
<td>$6.6</td>
<td>$6.6</td>
<td>$80.00</td>
<td>$66.0K</td>
<td>235</td>
<td style="text-align: right;">100</td>
</tr>
<tr>
<td>KBH</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>01/17/25</td>
<td>$6.8</td>
<td>$6.5</td>
<td>$6.5</td>
<td>$80.00</td>
<td>$65.0K</td>
<td>235</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>KBH</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>08/16/24</td>
<td>$4.3</td>
<td>$4.2</td>
<td>$4.22</td>
<td>$80.00</td>
<td>$46.4K</td>
<td>1.3K</td>
<td style="text-align: right;">190</td>
</tr>
</tbody>
</table>

<h3>About KB Home</h3>
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.
Following our analysis of the options activities associated with KB Home, we pivot to a closer look at the company's own performance.
<h3>Where Is KB Home Standing Right Now?</h3>
<ul>
<li>Trading volume stands at 257,061, with KBH's price down by -0.29%, positioned at $81.89.</li>
<li>RSI indicators show the stock to be may be overbought.</li>
<li>Earnings announcement expected in 63 days.</li>
</ul>
<h3>What The Experts Say On KB Home</h3>
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $77.8.
<ul>
<li>An analyst from Evercore ISI Group has decided to maintain their Outperform rating on KB Home, which currently sits at a price target of $89. </li>
<li>Maintaining their stance, an analyst from Wedbush continues to hold a Neutral rating for KB Home, targeting a price of $67. </li>
<li>Maintaining their stance, an analyst from RBC Capital continues to hold a Sector Perform rating for KB Home, targeting a price of $70. </li>
<li>An analyst from Keefe, Bruyette &amp; Woods persists with their Market Perform rating on KB Home, maintaining a target price of $77. </li>
<li>Maintaining their stance, an analyst from Evercore ISI Group continues to hold a Outperform rating for KB Home, targeting a price of $86. </li>
</ul>
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest KB Home options trades with real-time alerts from <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>.

Options

KB Home Unusual Options Activity

ARHS

CVCO

PRPL

TSCO

Shares of household durable stocks are trading higher after store sales of building material and garden supplies rose 1.4% in June. Also, strength may be due to trader optimism that the Fed will cut rates.

KB Home: Still Capable Of Building Value

Wedbush analyst Jay McCanless reiterated a Hold rating on KB Home (KBH – Research Report) today and set a price target of $67.00. The company's sha...

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KB Home's (KBH) long-term prospects appear promising with continuous portfolio expansion and growing demand. So, should you invest in this stock following its earnings release? Read more to find out KB Home (<a href="https://stocknews.com/stock/KBH/">KBH</a>), a leading homebuilding company that builds and sells various homes, is set to report its financial results for the third quarter, which ended August 31, 2024, after the market close on September 24, 2024. Street expects the company's revenue and EPS for the third quarter to grow 8.9% and 15% year-over-year to $1.73 billion and $2.07, respectively.
During the last reported quarter, KBH's net orders increased by 2% to 3,997, and the net order value grew by 7% to $2.03 billion. Further, its monthly net orders per community increased to 5.5 from 5.2. Also, the company expects its ending community count in the range of 250 to 255 over the full year 2024.
KB Home offers affordable housing facilities and focuses on providing personalized, spacious, new homes and family-friendly amenities. During the second quarter, KBH opened multiple new communities to cater to the diverse demands of its customers. These communities include Rhythm, Farmlore Villas, Overlook Ranch, Catania at Citrine, and Enclave.
Further, amid interest rate cuts, coupled with slowing inflation, more and more individuals are interested in purchasing houses, resulting in strong growth for the homebuilding industry. The US residential construction market is expected to grow at a <a href="https://www.mordorintelligence.com/industry-reports/us-residential-construction-market">CAGR of 3%</a>, driven by affordable housing trends.
Regarding the second quarter results, Jerey Mezger, Chairman and Chief Executive Officer of the company, commented, "Buyers remained resilient in their desire for homeownership despite the volatility in mortgage interest rates."
He added, "Our pace of monthly net orders per community was one of our highest second quarter levels in many years, which we believe reflected the compelling, personalized choice that our Built to Order model offers to meet each buyer's lifestyle and budget."
Shares of KBH have gained 29.4% over the past six months and 79.6% over the past year to close its last trading session at $86.75.
Let's look at factors that could influence KBH's performance in the upcoming months.
Mixed Financials
For the second quarter that ended May 31, 2024, KBH's total revenues decreased 3.1% year-over-year to $1.71 billion. Also, its <a href="https://www.investopedia.com/terms/o/operatingincome.asp">operating income</a> declined 6.9% from the year-ago value to $188.18 million. Its total pretax income of $221.12 million reflects growth of 2.9% from the prior-year quarter.
Furthermore, the company's net income and EPS came in at $168.42 million and $2.15, indicating increases of 2.4% and 10.8% from the prior year's quarter, respectively. As of May 31, 2024, KBH's total assets stood at $6.81 billion, compared to $6.65 billion as of November 30, 2023.
According to the company's guidance for the full year 2024, KBH expects its housing revenues to range from $6.70 billion to $6.90 billion. Its average selling price is expected to be between $485,000 and $495,000. Also, the company expects homebuilding operating income as a percentage of revenues between 11% and 11.4%.
Solid Historical Growth
KBH's revenue grew at a CAGR of 10.5% over the past three years, while its EBITDA improved at a CAGR of 11.9%. Its EBIT increased at a CAGR of 12% over the same period, while the company's net income and EPS grew at respective CAGRs of 12.6% and 19.2% over the same time frame.
Further, the company's tangible book value and total assets have increased at a CAGR of 11.4% and 6.6% over the past three years, respectively.
Favorable Analyst Estimates
Analysts expect KBH's revenue for the third quarter (ending August 2024) to come in at $1.73 billion, indicating an increase of 8.9% year-over-year. The consensus EPS estimate of $2.07 for the same period reflects a 15% year-over-year improvement. Moreover, the company has surpassed the consensus revenue and EPS estimates in each of the trailing four quarters.
For the fiscal year (ending November 2024), the company's revenue and EPS are anticipated to grow 6.5% and 19.7% year-over-year to $6.83 billion and $8.41, respectively. In addition, Street expects its revenue and EPS for the fiscal year 2025 to grow 4.8% and 6.7% from the prior year to $7.16 billion and $8.97, respectively.
Mixed Profitability
KBH's trailing-12-month EBIT margin of 11.76% is 50.7% higher than the 7.81% industry average. However, its trailing-12-month gross profit margin of 21.89% is 41.1% lower than the industry average of 37.19%. And the stock's trailing-12-month levered FCF margin of 4.94% is lower than the industry average of 5.25%.
Furthermore, the stock's ROCE, ROTC, and ROTA of 15.54%, 8.46%, and 8.92% are favorable compared to the 11.32%, 6.08%, and 4.12% industry average, respectively.
Lower Valuation
In terms of forward non-GAAP P/E, KBH is currently trading at 10.31x, 37.2% lower than the industry average of 16.41x. Also, the stock's forward EV/Sales and Price/Sales of 1.11x and 0.96x are considerably lower than the industry average of 1.25x and 0.92x, respectively.
Additionally, the stock's forward EV/EBITDA and Price/Book of 7.70x and 1.57x are 22.8% and 38.2% lower than the industry averages of 9.98x and 2.54x, respectively.
POWR Ratings Reflect Uncertainty
KBH's mixed fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of C, translating to a Neutral in our proprietary system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. KBH has a B grade for Value, justified by its lower-than-industry valuation.
However, the stock has a C grade for Growth, in sync with its mixed performance in the last reported quarter. It also has a D grade for Stability, consistent with its 5-year beta of 1.81.
KBH is ranked #15 among the 23 stocks in the <a href="https://stocknews.com/category/homebuilders/">Homebuilders</a> industry.
Beyond what I have stated above, we have also given KBH grades for Sentiment, Momentum, and Quality. Get access to all the KBH ratings <a href="https://stocknews.com/stock/KBH/">here</a>.
Bottom Line
KBH is set to report its third quarter earnings during late September. The company's long-term prospects appear promising, driven by its expanding product offerings, strategic investments, and solid order growth.
Despite solid historical growth and lower valuation, KB Home grapples with declining revenue and operating income.
Given KBH's mixed financial results and profitability, waiting for a better entry point in this stock seems prudent.
Stocks to Consider Instead of KB Home (KBH)
Given its near-term uncertain prospects, the odds of KBH outperforming in the weeks and months ahead are compromised. However, there are many industry peers with much more impressive POWR Ratings. So, consider these A (Strong Buy) or B (Buy) stocks from the <a href="https://stocknews.com/category/homebuilders/">Homebuilders</a> industry instead:
M/I Homes, Inc. (<a href="https://stocknews.com/stock/MHO/">MHO</a>)
NVR Inc. (<a href="https://stocknews.com/stock/NVR/">NVR</a>)
PulteGroup Inc. (<a href="https://stocknews.com/stock/PHM/">PHM</a>)
For exploring more A and B-rated homebuilders stocks, <a href="https://stocknews.com/category/homebuilders/">click here</a>.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
<a href="https://report.stocknews.com/free-report/10-stocks-to-sell/?formplacement=artbotad_10sell">10 Stocks to SELL NOW! &gt;</a>

<hr />
KBH shares were trading at $86.82 per share on Wednesday afternoon, up $0.07 (+0.08%). Year-to-date, KBH has gained 40.43%, versus a 19.28% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/kbh-mho-nvr-phm-can-kb-home-outperform-as-demand-for-affordable-housing-grows/>Can KB Home Outperform as Demand for Affordable Housing Grows?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Can KB Home Outperform as Demand for Affordable Housing Grows?

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FBIN

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Press Releases

KB Home Named One of America's Best Midsize Companies by TIME Magazine, Earning a Place in the Top 15% of All Companies Listed

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

KB Home (KBH) Forecast

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