Zacks Research Issues Positive Outlook for KB Home Earnings

Key Points

• Zacks Research raised KB Home’s Q3 2027 EPS estimate to $1.08 from $1.01, while maintaining a “Strong Sell” rating. It also projects FY2027 EPS of $4.11.
• KB Home recently beat quarterly EPS expectations, reporting $1.05 versus the $0.88 consensus, but revenue fell 20% year over year and earnings declined from $1.61 in the prior-year quarter.
• Investor sentiment remains cautious: analysts have a consensus “Hold” rating with an average $53.08 price target, while KB Home shares opened at $41.88 and insiders recently sold stock.

KB Home (NYSE:KBH - Free Report) - Equities researchers at Zacks Research boosted their Q3 2027 EPS estimates for shares of KB Home in a report issued on Tuesday, October 13th. Zacks Research analyst Team now expects that the construction company will earn $1.08 per share for the quarter, up from their prior estimate of $1.01. Zacks Research has a "Strong Sell" rating on the stock. The consensus estimate for KB Home's current full-year earnings is $3.26 per share. Zacks Research also issued estimates for KB Home's FY2027 earnings at $4.11 EPS and Q3 2028 earnings at $1.37 EPS.

KB Home (NYSE:KBH - Get Free Report) last posted its quarterly earnings data on Tuesday, September 22nd. The construction company reported $1.05 EPS for the quarter, topping the consensus estimate of $0.88 by $0.17. The business had revenue of $1.30 billion during the quarter, compared to the consensus estimate of $1.30 billion. KB Home had a net margin of 4.39% and a return on equity of 6.56%. The business's revenue for the quarter was down 20.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.61 earnings per share.

Other analysts have also recently issued research reports about the company. Weiss Ratings cut KB Home from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday, October 9th. Morgan Stanley assumed coverage on KB Home in a research note on Thursday, October 1st. They set an "underweight" rating and a $39.00 price target on the stock. Keefe, Bruyette & Woods dropped their price target on KB Home from $65.00 to $54.00 and set a "market perform" rating on the stock in a research note on Monday, October 5th. Bank of America cut their price objective on KB Home from $56.00 to $54.00 and set a "neutral" rating on the stock in a report on Wednesday, September 23rd. Finally, Melius Research began coverage on KB Home in a research note on Tuesday, October 6th. They issued a "sell" rating and a $43.00 price objective for the company. Four equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat, KB Home has a consensus rating of "Hold" and an average price target of $53.08.

KB Home Price Performance

NYSE KBH opened at $41.88 on Thursday. The stock's fifty day moving average price is $50.56 and its 200 day moving average price is $52.44. KB Home has a 1 year low of $40.92 and a 1 year high of $67.57. The company has a market cap of $2.54 billion, a price-to-earnings ratio of 10.77, a PEG ratio of 2.19 and a beta of 1.34.

KB Home Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 25th. Shareholders of record on Thursday, November 12th will be paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 2.4%. The ex-dividend date is Thursday, November 12th. KB Home's payout ratio is presently 28.17%.

Insider Buying and Selling at KB Home

In other news, EVP Albert Praw sold 22,015 shares of the company's stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $58.70, for a total value of $1,292,280.50. Following the sale, the executive vice president directly owned 104,062 shares of the company's stock, valued at $6,108,439.40. This represents a 17.46% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Arthur Collins sold 4,000 shares of the stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $56.96, for a total transaction of $227,840.00. Following the completion of the sale, the director owned 9,157 shares in the company, valued at $521,582.72. The trade was a 30.40% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 4.69% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On KB Home

Hedge funds have recently added to or reduced their stakes in the business. Great Lakes Advisors LLC acquired a new stake in shares of KB Home during the 2nd quarter valued at about $4,470,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in KB Home in the 2nd quarter worth about $1,609,000. Bank of America Corp DE acquired a new position in KB Home in the 2nd quarter worth about $35,377,000. Donald Smith & CO. Inc. acquired a new position in KB Home in the 2nd quarter worth about $108,652,000. Finally, SummitTX Capital L.P. purchased a new position in KB Home during the first quarter worth approximately $1,771,000. 96.09% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting KB Home

Here are the key news stories impacting KB Home this week:

• Positive Sentiment: Zacks Research raised its FY2026 earnings estimate to $3.21 per share from $3.11, although the revised forecast remains slightly below the broader consensus of about $3.25–$3.26. Zacks continues to rate KB Home “Strong Sell.”
• Neutral Sentiment: KB Home’s board approved long-term incentive awards for executives on October 8. The grants may align management with long-term shareholder performance, but the announcement does not provide an immediate change to earnings or cash flow. KB Home Updates Executive Long-Term Incentive Awards
• Neutral Sentiment: Wall Street brokerages collectively assigned KB Home a “Hold” rating, suggesting limited conviction that the shares will rebound soon. KB Home Stock Rated Hold by Wall Street Brokerages
• Negative Sentiment: Zacks cut EPS estimates across several periods, including Q4 2026 to $1.21 from $1.30, Q1 2027 to $0.63 from $0.65, Q2 2027 to $0.80 from $0.82, Q4 2027 to $1.60 from $1.61, Q1 2028 to $0.87 from $0.94, Q2 2028 to $1.07 from $1.12, and FY2028 to $5.03 from $5.12. The widespread reductions point to softer expected profitability and are likely the main reason for the stock’s decline.

KB Home Company Profile

KB Home is a national homebuilder that designs, constructs and sells single-family homes and townhomes. The company offers homes in a range of floor plans, sizes and price points, with options that allow buyers to personalize features and finishes. Its communities typically include amenities such as parks, open spaces and other neighborhood improvements.

Founded in 1957, KB Home is headquartered in Los Angeles, California. The company serves residential markets across the United States, including Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, South Carolina, Texas and Washington.

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