Buy, Sell or Hold: KB Home (KBH-N) — Stock Predictions at Stockchase

Home Daily Stock Opinions and Ratings KB Home (KBH-N)

NYSE:KBH

59.21

0.10 (0.17%) 1d

Investor Insights

This summary was created by AI, based on 3 opinions in the last 12 months.

KB Home faces significant challenges as it reports its earnings, with various underlying issues affecting its performance. Experts are particularly concerned about inflation and high mortgage rates, which have led to a notable decline in its stock price. One analyst points out that the company has a substantial presence in California but suggests that it won't benefit from the recent Los Angeles fires, as the homes they build do not align with those market prices. Furthermore, the impact of broader economic policies, like Trump's immigration stance, may increase wages and costs for homebuilders, affecting profitability. The overall sentiment indicates uncertainty, emphasizing that while housing prices remain elevated, sustained high prices could lead to pushback from consumers amidst rising costs of living.

Consensus

Negative

Valuation

Overvalued

Similar

Lennar Corp., LEN-N

DON'T BUY

It reports Monday. Is struggling with inflation/mortgage issues as rates remain high. Shares have plummeted from highs and he doesn't see a bottom, because shares were even lower in fall 2023 at $42. Bide your time and wait for a better moment.

DON'T BUY

They report Monday. They have a big presence in California, but no, they won't benefit from the Los Angeles fires; LA homes are more expensive than what KB deals in. Trump's draconian anti-immigration policy will hurt all the homebuilders by increasing wages and therefore costs.

WATCH

They report Tuesday. Housing the linchpin of the economy and prices keep climbing. We need to hear if they will build more homes or keep the supply so tight that housing prices won't come down. The buildings are limiting supply to keep gross margins up and prices up, but it's terrible to fight inflation. Housing stocks have hung up because we have a housing shortage, but how long can this last when we see pushback on the prices of other items like dining out, apparel and airline tickets, all of which have risen dramatically in the last 5 years.

DON'T BUY

Lennar and KB Homes They report Wednesday and he expects soft quarters. Mortgage rates are soaring so fast. However, these shares climbed today in a rough market, perhaps because investors feel that the Fed will hold off on rapid-fire rates after next Wednesday.

COMMENT

It has the lowest PE in the S&P 500 at slightly more than 2x. This usual means the estimates are way too high. They report Wednesday. If Lennar stock doesn't go down after their Tuesday report, then buy KB.

COMMENT

An analyst downgraded it today. The averaging selling prices for homes remain great, says the company, without signs of slowing. Q1 revenues were up 23% but slightly missed estimates. It's down nearly 10% in the past week. They fell short on the top and bottom lines. However, they have a very strong backlog to fulfill and management maintained their full-year forecast as the company expects higher prices. It now trades at a big discount to book value. Instead of buying back shares (at low share prices), the company would rather buy more homes. The homebuilders are cyclicals . Also, can they execute? Supply china shortages are a problem.

COMMENT

Home demand will remain strong will at least the end of the year, though skyrocketing labour and materials costs like lumber and metals are a a problem. Last week, KBH reported a disappointing quarter, though management raised parts of guidance. The averaging selling prices for homes (and demand) remain great, says the company, without signs of slowing. It trades at only 3.3x this year's earnings, so it could be a bargain. Q1 revenues were up 23% but slightly missed estimates. They reported great numbers in California. Shares are down nearly 10% in the past week after they fell short on the top and bottom lines last week. However, they have a very strong backlog to fulfill, and management maintained their full-year margin forecast as the company expects higher home prices. The CEO says their biggest challenge is completing homes. Shares now trade at a big discount to book value. If they start buying back stocks, he's in, but if not, he's on the sidelines.

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK

(A Top Pick Nov 18/21, Down 12.8%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with KBH has triggered its stop at $38. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 10%, when combined with the previous buy recommendation.

WEAK BUY

It reports Wednesday. He expects good numbers, and shares could rise, setting aside fears of rising rates impacting the homebuilders. However, he thinks Toll Brothers and Lennar are better in homebuilders.

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Research Editor: Michael O'Reilly The US based home builder is again reiterated as a TOP PICK. Recently reported earnings showed a 35% increase in the number of homes delivered with average sales prices up 11% -- helping to propel EPS above analyst expectations. Trading at 8x earnings, compared to peers at 18x is trading at 1.5x book value. It pays a small dividend (that has tripled over the past 3 years) that is backed by a payout ratio under 15% of cash flow. We recommend trailing up the stop (from $32) to $38, looking to achieve $53 -- upside potential over 20%. Yield 1.38% (Analysts’ price target is $53.00)

BUY

Trades at less than 7x earnings. Cheap. This and its peers are pricing in a much higher mortgage rates and no customers in the future. So, they don't reflect the current rampant demand for new homes. If the Fed's Jay Powell keeps interest rates low, homebuilding stocks will roar. The U.S. is currently building 1.6 million homes, but demand is for 2 million.

COMMENT

KB needs to confirm what Lennar said about the hot state of the housing market. Sure, this sector is cyclical, but won't be harmed by a few rate early hikes a year or two later. Otherwise, buy Lennar who just reported a fine quarter.

BUY ON WEAKNESS

Are a U.S. homebuilder in 40-50 markets with a long track record. He really likes their 1.4x price to book value vs. peers around 2.1x. Likes their built-order model which offers better pricing power and wider margins. KBH good value. No, he doesn't see a Canadian housing crash. Rather, there's a supply shortage, particularly in cities like Toronto and Calgary, restricting more single-family homes. Eventually, the government will welcome more immigrants which will exacerbate supply further. That said, borrowing costs remain historically low.

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK

(A Top Pick Jan 14/21, Up 22.8%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with KBH has achieved its $44 objective. To be disciplined, we recommend covering 50% and trailing up the stop (from $27) to $32.

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Research Editor: Michael O'Reilly KBH is a US homebuilder. Recently reported revenues were disappointing -- down over 23% -- but sales prices were 5% higher backed by the expectation of continued low interest rates. Overall, EPS of $1.12 came in $0.18 higher than analyst expectations. The company reported orders volumes increased 50% putting order backlogs at 15 year highs. It trades at 10x earnings compared to sector averages over 34x -- making this good value here. It pays a small dividend, backed by a 13% payout ratio. We would buy this with a stop-loss at $27, looking to achieve $44 -- over 22% upside. Yield 1.71% (Analysts’ price target is $43.13)

Showing 1 to 15 of 38 entries

KB Home(KBH-N) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 2

Stockchase rating for KB Home is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

KB Home(KBH-N) Frequently Asked Questions

What is KB Home stock symbol?

KB Home is a American stock, trading under the symbol KBH-N on the New York Stock Exchange (KBH). It is usually referred to as NYSE:KBH or KBH-N

Is KB Home a buy or a sell?

In the last year, 2 stock analysts published opinions about KBH-N. 0 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for KB Home.

Is KB Home a good investment or a top pick?

KB Home was recommended as a Top Pick by on . Read the latest stock experts ratings for KB Home.

Why is KB Home stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is KB Home worth watching?

2 stock analysts on Stockchase covered KB Home In the last year. It is a trending stock that is worth watching.

What is KB Home stock price?

On 2025-03-27, KB Home (KBH-N) stock closed at a price of $59.21.

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KB Home (KBH-N)

NYSE:KBH

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KB Home(KBH-N)

This is a Panic-proof Portfolio opinion which is available only for Premium members

KB Home(KBH-N)

KB Home(KBH-N)

This is a Panic-proof Portfolio opinion which is available only for Premium members

KB Home(KBH-N)

KB Home(KBH-N)

KB Home(KBH-N)

KB Home(KBH-N)

This is a Panic-proof Portfolio opinion which is available only for Premium members

KB Home(KBH-N)

This is a Panic-proof Portfolio opinion which is available only for Premium members

KB Home(KBH-N)

KB Home(KBH-N) Rating

KB Home(KBH-N) Frequently Asked Questions

What is KB Home stock symbol?

Is KB Home a buy or a sell?

Is KB Home a good investment or a top pick?

Why is KB Home stock dropping?

Is KB Home worth watching?

What is KB Home stock price?

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