KB Home (KBH): There Is Growth, But The Price Isn’t Reflecting This

Most analysts believe that KB Home, (KBH) has the potential to rise by 24.03% or more. For KB Home to record further gainanalysts believe that the company has to hit $35 price target. The high price target for KBH for next 12 months currently stands at $35. This means that the highest 12 months price target is 24.03% above its last closing price. For most investors, the 1.36% change in the share price could have prompted them to buythe stock, but doing that would be a mistake as it would be taking into consideration only the short-term performance of the stock. The stock closed August 28, 2019 trading at $28.22 which saw downtrend of 47.75% since the beginning of 2019. The price of the stock has risen by 4.25% from average 12-month price target of $29.42 expected by the analysts. The median price target for the stock over the next 12 months is $30, which means that it could rise by 6.31% from its current position. Despite that, some analysts believe that it won’t perform excellent, setting a lower price target of $23.5 for the stock which means it could rise by -16.73%.

A look at the KBH stock today shows that it has gained 10.75% of its value over the past one year, which has led to some investors becoming excited about the short-term performance of KB Home (NYSE:KBH). If we turn to the stock analysts in general, they revealed that most of them are still bullish about the chances of the shares. The consensus rating from analysts for KB Home (KBH) is 2.4 which is a ,neutral rating. Over the past week, the stock has been rated as a Buy 10 times while it has been rated as a Hold 8 times. The 52-week high price for KBH is $28.92 which is attained on August 23 while its 52-week low currently stands at $16.82 and was reached on November 15. At the moment, the stock is trading $3.55 above its YTD moving average set at $24.67.

Moving on, KB Home (KBH) last released its earnings for the May 2019 quarter of the fiscal year. The company performed lower over the past three months, with its earnings down -11% year-over-year at $0.51. The company brought a surprise of 28 as analysts were predicting $0.4 per share. The revenue generated by KB Home in the May 2019 quarter declined by -7% to reach $1.02 billion. This is lowcompared to the $1.1 billion it recorded in the same quarter last year. To see what traders should watch in its August 2019 financial results, analysts have consensus earnings per share of $0.65 which is lowerthan the $0.87 recorded in the same quarter a year ago. Over the next 12 months, the earnings per share are expected to move by 12.86%. If it achieves that, then the company firmly believes that its long-term annual earnings growth rate target set at 6.6 % could be achieved. The company has also recorded a revenue of $4.41 billion over the past 12 months.

In order to determine if the stock is worthy of your patience, you should know that KB Home (NYSE:KBH) is now trading at 10.56X the earnings per share recorded over the past 12 months. This is a downtrend compared to the readings of the sector which is 18.76X while the industry average stands at 9.95X. The most popular way to value a stock is to look at its historic Price-to-Earnings (P/E) ratio with the help of its earnings report over the past 12 months. KB Home was able to achieve an EPS of $2.67 during the last four quarters. The P/E ratio is widely known due to the fact that it is widely used, simple, effective, and, tautologically.

On Wednesday, August 28 of 2019, the 14-day Absolute ATR (Average True Range) for KBH moved by $0.81. Over the past seven days, the stock’s average daily volatility stood at 2.71%. A stock with a low volatility is usually a good one as it means that investors are very confident in the stock. KB Home’s trading volume has recently moved to 1.66 million, which is compared with the average daily volume of 1.61 million shares.

The daily chart for KBH, points out that the company has recorded 23.72% gains over the past six months. However, it is still 67.78% higher than its most recent low trading price. The performance of the stock over the past five days shows that it is up 0.18% though it is 4.73% above its three-week moving average. It is worthy to know that price action is not always clear. There are times when a stock will undergo some negatives, trade erratically within some range or even act very unpredictable. When that happens, then making use of moving averages makes the pattern clearer for traders. Comparing to 50-day SMA, the price of the stock has surged by 7.06% while it is up 18.34% against the 200-day SMA. This is usually seen as the last support line for a stock, as a move downward could signal a bearish trend or market. The daily chart of KBH reveals that it has gained some grounds as it ended Wednesday with a 3.56% rise over the past 30 days.