In the latest market close, KB Home (KBH) reached $73.25, with a +0.27% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.09%. On the other hand, the Dow registered a loss of 0.49%, and the technology-centric Nasdaq increased by 0.65%.

Heading into today, shares of the homebuilder had gained 19.69% over the past month, outpacing the Construction sector's gain of 5.69% and the S&P 500's gain of 5.78% in that time.

The investment community will be paying close attention to the earnings performance of KB Home in its upcoming release. The company's earnings per share (EPS) are projected to be $1.79, reflecting a 7.73% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.64 billion, down 7.1% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.01 per share and a revenue of $6.77 billion, signifying shifts of +13.94% and +5.55%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for KB Home. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, KB Home is carrying a Zacks Rank of #2 (Buy).

Looking at its valuation, KB Home is holding a Forward P/E ratio of 9.12. This expresses a discount compared to the average Forward P/E of 9.17 of its industry.

It's also important to note that KBH currently trades at a PEG ratio of 0.82. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Home Builders was holding an average PEG ratio of 0.79 at yesterday's closing price.

The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 18, this industry ranks in the top 8% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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