Is KB Home (KBH) Outperforming Other Construction Stocks This Year?

Zacks Equity Research
·2 min read

For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. KB Home (KBH) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? 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 99 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. KBH is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for KBH's full-year earnings has moved 6.90% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, KBH has moved about 46.45% on a year-to-date basis. At the same time, Construction stocks have gained an average of 19.28%. This means that KB Home is performing better than its sector in terms of year-to-date returns.

Looking more specifically, KBH belongs to the Building Products - Home Builders industry, which includes 19 individual stocks and currently sits at #64 in the Zacks Industry Rank. On average, this group has gained an average of 22.03% so far this year, meaning that KBH is performing better 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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