Zacks Research Issues Positive Forecast for KB Home Earnings

Key Points

• Zacks Research raised its Q3 2026 EPS estimate for KB Home to $0.85 from $0.74, signaling improved near-term earnings expectations even as the firm kept a Hold rating.
• Analysts also boosted longer-term forecasts, with FY2027 EPS now seen at $4.07 and FY2028 EPS at $5.09, suggesting stronger profit potential over the next few years.
• Despite the higher estimates, KB Home remains in a mixed analyst camp: the consensus rating is Hold with a target price of $60.17, and the stock recently fell 3.8% after reporting earnings that missed estimates by a penny.

KB Home (NYSE:KBH - Free Report) - Investment analysts at Zacks Research raised their Q3 2026 earnings estimates for shares of KB Home in a report released on Wednesday, July 8th. Zacks Research analyst Team now anticipates that the construction company will earn $0.85 per share for the quarter, up from their prior forecast of $0.74. Zacks Research has a "Hold" rating on the stock. The consensus estimate for KB Home's current full-year earnings is $3.25 per share. Zacks Research also issued estimates for KB Home's Q4 2026 earnings at $1.29 EPS, FY2026 earnings at $3.09 EPS, Q1 2027 earnings at $0.65 EPS, Q2 2027 earnings at $0.81 EPS, Q3 2027 earnings at $1.01 EPS, Q4 2027 earnings at $1.60 EPS, FY2027 earnings at $4.07 EPS, Q1 2028 earnings at $0.93 EPS, Q2 2028 earnings at $1.11 EPS and FY2028 earnings at $5.09 EPS.

Other analysts have also recently issued reports about the company. Bank of America cut their target price on KB Home from $63.00 to $56.00 and set a "neutral" rating on the stock in a research note on Wednesday, March 25th. Wells Fargo & Company increased their price objective on KB Home from $50.00 to $52.00 and gave the stock an "underweight" rating in a report on Wednesday, June 24th. Truist Financial lifted their price objective on KB Home from $50.00 to $56.00 and gave the stock a "hold" rating in a research report on Wednesday, June 24th. UBS Group boosted their target price on KB Home from $63.00 to $66.00 and gave the company a "buy" rating in a research note on Wednesday, June 24th. Finally, Wall Street Zen upgraded KB Home from a "sell" rating to a "hold" rating in a report on Saturday, June 27th. Four research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, KB Home currently has a consensus rating of "Hold" and a consensus target price of $60.17.

KB Home Trading Down 3.8%

Shares of NYSE:KBH opened at $56.44 on Thursday. The company has a market cap of $3.54 billion, a price-to-earnings ratio of 19.66, a price-to-earnings-growth ratio of 9.87 and a beta of 1.34. The company has a 50-day moving average price of $52.68 and a 200-day moving average price of $55.79. KB Home has a 12 month low of $44.03 and a 12 month high of $68.71.

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

Institutional Trading of KB Home

Several large investors have recently bought and sold shares of KBH. Bessemer Group Inc. raised its position in shares of KB Home by 80.0% in the 1st quarter. Bessemer Group Inc. now owns 495 shares of the construction company's stock worth $26,000 after acquiring an additional 220 shares in the last quarter. Eastern Bank bought a new stake in shares of KB Home during the second quarter valued at approximately $26,000. First Horizon Corp grew its stake in KB Home by 178.9% in the fourth quarter. First Horizon Corp now owns 502 shares of the construction company's stock worth $28,000 after purchasing an additional 322 shares during the period. Parkside Financial Bank & Trust grew its stake in KB Home by 73.1% in the fourth quarter. Parkside Financial Bank & Trust now owns 592 shares of the construction company's stock worth $33,000 after purchasing an additional 250 shares during the period. Finally, Fulcrum Asset Management LLP purchased a new stake in KB Home in the third quarter worth $36,000. 96.09% of the stock is owned by institutional investors.

KB Home Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, May 21st. Investors of record on Thursday, May 7th were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date of this dividend was Thursday, May 7th. KB Home's dividend payout ratio is presently 34.84%.

KB Home News Roundup

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

• Positive Sentiment: Zacks Research lifted KB Home’s FY2026 EPS estimate to $3.09 from $2.80, indicating stronger near-term earnings expectations.
• Positive Sentiment: Analysts also raised several later-period forecasts, including FY2027 EPS to $4.07 and FY2028 EPS to $5.09, which points to improving long-term profit potential.
• Neutral Sentiment: Zacks Research reiterated a “Hold” rating, suggesting the firm sees limited immediate upside despite the higher estimates.
• Negative Sentiment: The only cut in the batch was a lower Q1 2027 EPS estimate to $0.65 from $0.72, showing some quarter-to-quarter caution.

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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