KB Home, a prominent player in the household durables sector, is currently navigating a mixed landscape as it looks toward 2025. With a market value hovering around $64.47 billion, the stock's recent price action shows a slight dip of 0.66, reflecting some investor caution. Analysts present a divided outlook: while two strong buys suggest optimism, three strong sells and eight holds indicate prevailing uncertainty. The highest target price of $90.59 suggests potential upside, yet the overall consensus remains a cautious 'Hold.' The company's fiscal year ending in November will be crucial in determining whether it can overcome current challenges and capitalize on growth opportunities. As KB Home maneuvers through these dynamics, investors should keep a close eye on its performance indicators and market sentiment. Our analysis tools for KB Home (KBH) assist investors in understanding its daily market dynamics, including demand, supply, trading volume, patterns, and price fluctuations. By employing various techniques, we aim to uncover KBH's intrinsic value using popular technical indicators. In this discussion, we'll take a closer look at KB Home to assess whether its shares are fairly valued as we approach February.
The successful prediction of KB Home
stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published
stock prices of traded companies, such as KB Home, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at
the intrinsic value of KB Home based on KB Home hews, social hype, general headline patterns, and widely used
predictive technical indicators. We also calculate exposure to KB Home's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to KB Home's related companies.
Use Technical Analysis to project KBH expected Price
KB Home technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of KB Home technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of KB Home trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions.
More Info...Breaking down KB Home Further
The recent plunge in stock price may raise some interest from traders. The stock closed today at a share price of
64.47 on
1,006,617 in trading volume. The company directors and management have failed to build on market volatilities in
December. However, diversifying your overall positions with KB Home may protect your principal portfolio during upcoming market swings. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.06. The current volatility is consistent with the ongoing market swings in
December 2024 as well as with KB Home unsystematic, company-specific events.
Current Deferred Revenue Breakdown
KB Home's Current Deferred Revenue is increasing with slightly volatile movements from year to year. Current Deferred Revenue is estimated to finish at about 71.1
M this year. Current Deferred Revenue usually refers to revenue that has been collected but not yet earned, typically from prepaid service contracts or subscriptions. This amount is considered a liability until the service is provided or the subscription period ends. As of now, KB Home's Current Deferred Revenue is increasing as compared to previous years.
| 2017 | 19.49 Million |
| 2018 | 22.38 Million |
| 2019 | 26.24 Million |
| 2020 | 71.03 Million |
| 2021 | 76.74 Million |
| 2022 | 58.91 Million |
| 2024 | 67.75 Million |
| 2025 | 71.13 Million |
They say the devil is in the details, and when it comes to KB Home, there are plenty of details to consider. With a Price to Sales ratio of 0.73X, the stock appears undervalued compared to industry peers, suggesting potential growth. However, a Probability of Bankruptcy at 11.63% introduces a note of caution for investors. Institutional investors hold a significant 87.60% of shares, indicating strong institutional confidence, yet the short ratio of 5.84X signals some skepticism in the market. As KB Home navigates the ever-changing landscape of the residential construction industry, it will be crucial for the company to manage these challenges effectively to sustain its growth trajectory.
KB Home has 95 percent chance to stay above $66 in 2 months
KB Home's stock is showing encouraging resilience, with a strong chance of staying above $66 in the next two months. This stability is supported by a potential upside of 2.26%, indicating modest gains ahead. For investors, this presents an appealing opportunity, as the combination of stable support and growth potential offers a balanced risk-reward scenario. The stock exhibits low volatility, with a skewness of 0.35 and kurtosis of 2.01. Understanding market volatility trends helps investors time their trades more effectively. By using these indicators, traders can assess KB Home's stock risk relative to market conditions in both rising and falling markets.
Bear markets can increase volatility, impacting stock prices and prompting investors to adjust their portfolios by diversifying as prices decline.As we look ahead to 2025, KB Home stands at a pivotal juncture. With an analyst consensus rating of "Hold," the stock presents a mixed bag of potential and caution. The highest estimated target price of $90.59 suggests room for growth, yet the valuation market value hovers around $64.47, indicating a more conservative outlook. Investors should weigh these factors carefully, considering both the opportunities and risks. While the housing market dynamics and economic conditions will play crucial roles, KB Home's ability to navigate these challenges will ultimately determine whether it can reach new heights or face setbacks. For those considering an investment, keeping a close eye on market trends and company performance will be key to making informed decisions..
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of KB Home. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
[email protected]