Zacks Research Has Optimistic Outlook of KB Home Q3 Earnings

Key Points

• Zacks Research nudged KB Home’s Q3 2027 EPS estimate higher to $1.02 from $1.01, and also raised several longer-term earnings forecasts, signaling slightly improved profit expectations.
• Despite the higher estimates, Zacks kept a Hold rating on KB Home. The broader analyst view remains cautious, with a consensus rating of Hold and an average price target of $60.17.
• KB Home recently missed quarterly EPS estimates by a penny, with earnings down sharply year over year even as revenue topped expectations. The company also declared a $0.25 quarterly dividend, equal to a 1.8% annualized yield.

KB Home (NYSE:KBH - Free Report) - Investment analysts at Zacks Research raised their Q3 2027 EPS estimates for KB Home in a report released on Monday, July 13th. Zacks Research analyst Team now expects that the construction company will earn $1.02 per share for the quarter, up from their prior estimate of $1.01. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for KB Home's current full-year earnings is $3.30 per share.

A number of other brokerages also recently commented on KBH. Barclays increased their price target on shares of KB Home from $56.00 to $57.00 and gave the company an "overweight" rating in a report on Thursday, June 25th. Seaport Research Partners restated a "sell" rating and issued a $43.00 price target (down from $65.00) on shares of KB Home in a research report on Tuesday, April 7th. UBS Group lifted their price objective on shares of KB Home from $63.00 to $66.00 and gave the stock a "buy" rating in a research note on Wednesday, June 24th. Wall Street Zen raised shares of KB Home from a "sell" rating to a "hold" rating in a research note on Saturday, June 27th. Finally, Citigroup restated a "market outperform" rating on shares of KB Home in a report on Wednesday, June 17th. Four analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $60.17.

KB Home Stock Performance

NYSE KBH opened at $55.36 on Wednesday. The stock has a 50 day moving average price of $52.98 and a 200-day moving average price of $55.75. KB Home has a one year low of $44.03 and a one year high of $68.71. The company has a market capitalization of $3.39 billion, a P/E ratio of 19.29, a P/E/G ratio of 9.09 and a beta of 1.34.

KB Home (NYSE:KBH - Get Free Report) last announced its quarterly earnings results on Tuesday, June 23rd. The construction company reported $0.43 EPS for the quarter, missing analysts' consensus estimates of $0.44 by ($0.01). KB Home had a net margin of 4.94% and a return on equity of 7.67%. The firm had revenue of $1.11 billion for the quarter, compared to the consensus estimate of $1.09 billion. During the same period in the previous year, the company posted $1.50 earnings per share. KB Home's quarterly revenue was down 27.3% on a year-over-year basis.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the company. United Services Automobile Association purchased a new position in shares of KB Home in the 1st quarter valued at approximately $226,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in KB Home by 5.2% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 225,525 shares of the construction company's stock valued at $13,108,000 after purchasing an additional 11,103 shares in the last quarter. EverSource Wealth Advisors LLC raised its holdings in shares of KB Home by 23.5% in the second quarter. EverSource Wealth Advisors LLC now owns 2,530 shares of the construction company's stock worth $134,000 after buying an additional 482 shares during the last quarter. Marshall Wace LLP lifted its stake in shares of KB Home by 341.2% during the second quarter. Marshall Wace LLP now owns 86,667 shares of the construction company's stock worth $4,591,000 after buying an additional 67,023 shares during the period. Finally, Gamco Investors INC. ET AL acquired a new stake in shares of KB Home during the second quarter worth $711,000. Hedge funds and other institutional investors own 96.09% of the company's stock.

KB Home Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 20th. Stockholders of record on Thursday, August 6th will be issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date is Thursday, August 6th. KB Home's dividend payout ratio (DPR) is currently 34.84%.

KB Home News Summary

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

• Positive Sentiment: Zacks Research raised multiple earnings forecasts for KB Home, including FY2026 to $3.11 per share, FY2027 to $4.10, and FY2028 to $5.13, signaling slightly improved profit expectations. Article Title
• Positive Sentiment: Analysts also increased quarterly estimates for Q3 2026, Q4 2026, Q2 2027, Q1 2028, and Q2 2028, which may help reinforce confidence in KB Home’s longer-term earnings trajectory.
• Neutral Sentiment: Despite the higher estimates, Zacks Research kept a Hold rating on KB Home, suggesting the firm is not yet signaling a strong upside or downside conviction.

About KB Home

KB Home is an American homebuilding company headquartered in Los Angeles, California. Founded in 1957, it was among the first homebuilders to go public, offering investors access to one of the nation's largest residential construction platforms. The company is structured to serve a broad spectrum of homebuyers, with a particular focus on first-time, first move-up and active adult segments. As a public company trading on the New York Stock Exchange under the symbol KBH, KB Home draws on decades of experience in land acquisition, construction and community planning.

At its core, KB Home designs and constructs single-family detached and attached homes, townhomes and condominium units.

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