KBH

Comfort Systems USA (FIX) delivered impressive Q3 2026 results with earnings surging 68.6% to $13.91 per share and revenues jumping 53.7% to $3.77 billion, driven by strong technology sector demand. The company's backlog soared 90% to $17.81 billion, and operating income climbed 64.8%.

However, shares fell over 6% after-hours due to absent forward guidance and CFO transition concerns. Other construction sector peers showed mixed results, with United Rentals beating expectations while KB Home and Lennar underperformed.

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.

PulteGroup (PHM) reported Q3 2026 earnings of $2.53 per share, missing consensus estimates and declining 14.5% year-over-year. Revenues fell 9.8% to $3.97 billion, driven by lower home closings (down 8.7%), softer average selling prices, and margin compression to 24.8%.

While net new orders declined 6.5%, backlog improved 4.1% to 10,298 homes valued at $6.44 billion. The company faces persistent housing affordability challenges and rising mortgage rates.