
KB Home (KBH) Stock Forecast & Price Target
KB Home (KBH) Analyst Ratings
Bulls say
The analysis posits a positive outlook for KB Home, driven by greater-than-expected demand, which is anticipated to result in stronger sales volumes and improved pricing, ultimately leading to outsized earnings growth. Despite lower order and revenue estimates, a projected 3% increase in FY'26 earnings per share (EPS) reflects the effectiveness of aggressive cost management and share buybacks. Additionally, a strategic pivot back to the Build-To-Order (BTO) model is expected to enhance gross margins, with FY’25 estimates indicating a rise in gross margin percentage to 19.2%, supporting the company's potential for improved financial performance.
Bears say
KB Home's financial outlook is negatively affected by declining sales and order metrics, with revenue estimates for FY'25 expected to drop by 11% year-over-year to $6.16 billion, and a significant reduction in FY'26 earnings per share projections to $4.05, reflecting a 26% decrease. The company's order expectations for FY'26 have also been revised down to a growth of only 1%, down from a prior forecast of 5%, indicative of weakened demand. Additionally, the anticipated average sales prices for homes have decreased, further highlighting challenges in the residential construction market that may impact future profitability.
This aggregate rating is based on analysts' research of KB Home and is not a guaranteed prediction by Public.com or investment advice.
KB Home (KBH) Analyst Forecast & Price Prediction
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