NYSE:KBH
KB Home (KBH)
Financials 
Technical Analysis 
Jun 25, 2026, 12:00 amThis summary was created by AI, based on 2 opinions in the last 12 months.
Experts are expressing a pessimistic outlook for KB Home ahead of its earnings report, which is scheduled for Tuesday. They anticipate lukewarm sales driven by persistently high mortgage rates, contributing to what they describe as the worst homebuilding market in 40 years. The impact of these high rates is not isolated to KB Home; other companies in the sector, such as Lennar, are also expected to face similar challenges, including gross margin pressure. Consensus suggests that homebuilding stocks will remain under pressure until the Federal Reserve reassures the market about inflation and adjusts the Fed funds rate significantly downward, ideally to around 2-2.5%. In light of these factors, experts advise against trading these stocks at this time, indicating a lack of short-term prospects for recovery.
Likes the US housing space. This has come off pretty hard here. Doesn’t know if right now is the time. Seeing major negative sentiment readings on US homes and it is right down towards its bottom. Thinks this is a good space to get into right now. Over the next 3 years, we are more likely to see a growth scenario play out in the US, rather than a deflation scenario.
Thinks it is fairly early in the game for homebuilders. This company came home with very good results this morning and surprised the Street a little bit on revenues and on earnings. Average house prices are up 12%. They are mostly a Southwest US operation with a lot of business in California.
Gordon ReidOne of the major US homebuilders. They have all done extremely well. This had a selloff recently because of the threat of tapering. Cyclical, but a longer-term cycle. With the foul weather out of the way and the bad news from tapering already priced in, there is still a lot of ground to be made up. Cheap financing is still in place. This should be okay until such time as we actually see a rise in interest rates.
(Market Call Minute) Although housing starts took a bit of a pause, we could see an upswing. Maybe next year.
John StephensonWhen interest rates suddenly spiked, it was a perfect opportunity to step in. Lots of opportunity to expand. The next leg up is on fundamental growth.
Gordon Reid
'%20fill='%23ffffff'%3e%3cg%20id='Pager'%20transform='translate(423.000000,%201755.000000)'%3e%3cpath%20d='M243.295367,17.286474%20C243.68919,16.9045087%20244.327703,16.9045087%20244.721525,17.286474%20L249,21.4361302%20L253.278475,17.286474%20C253.672297,16.9045087%20254.31081,16.9045087%20254.704633,17.286474%20C255.098456,17.6684393%20255.098456,18.2877274%20254.704633,18.6696927%20L249.35654,23.856763%20C249.159628,24.0477457%20248.840372,24.0477457%20248.64346,23.856763%20L243.295367,18.6696927%20C242.901544,18.2877274%20242.901544,17.6684393%20243.295367,17.286474%20Z'%20id='Path'%20transform='translate(249.000000,%2020.500000)%20scale(-1,%201)%20rotate(-90.000000)%20translate(-249.000000,%20-20.500000)%20'%3e%3c/path%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/svg%3e)
Looks a bit expensive based on PE ratio. Valuation is a bit stretched. You are going to have fits and starts in the US housing market.