KBH

KB Home reported Q3 fiscal 2026 earnings of $1.05 per share, beating estimates by 19.3%, with revenues surpassing expectations. However, earnings declined 34.8% year-over-year due to lower deliveries and pricing pressure.

The company's Built to Order model showed promise with sequential margin improvement, but management narrowed full-year revenue guidance and expects continued challenges from higher mortgage rates and weak consumer confidence. The stock has a Zacks Rank #3 (Hold) with downward estimate revisions.

KB Home shares have declined 11% over the past month, underperforming the S&P 500. The homebuilder faces significant headwinds with earnings expected to drop 50% for the current fiscal year, though next year shows a projected 12.7% recovery.

Revenue is forecasted to decline 19.6% this year before a modest 1.7% rebound next year. The stock holds a Zacks Rank #3 (Hold) rating and trades at a discount to peers with a B valuation grade.

KB Home (KBH) has been heavily searched on Zacks.com and is facing significant headwinds. The homebuilder is expected to report a 50.2% earnings decline for the current fiscal year, with revenues projected to fall 19.4%. Despite a Zacks Rank #4 (Sell) rating and underperformance versus the S&P 500, the stock trades at a valuation discount to peers with a Grade A Value Style Score.