Is KB Home (KBH) Outperforming Other Construction Stocks This Year?
Investors focused on the Construction space have likely heard of KB Home (KBH), but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of KBH and the rest of the Construction group's stocks.
KB Home is a member of our Construction group, which includes 100 different companies and currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. KBH is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for KBH's full-year earnings has moved 6.43% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, KBH has moved about 13.77% on a year-to-date basis. In comparison, Construction companies have returned an average of 1.42%. This means that KB Home is outperforming the sector as a whole this year.
Breaking things down more, KBH is a member of the Building Products - Home Builders industry, which includes 18 individual companies and currently sits at #24 in the Zacks Industry Rank. On average, this group has gained an average of 16.78% so far this year, meaning that KBH is slightly underperforming its industry in terms of year-to-date returns.
Investors in the Construction sector will want to keep a close eye on KBH as it attempts to continue its solid performance.
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