KB Home Story

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KBH -- USA Stock  

USD 35.76  0.47  1.33%

It seems as KB Home will continue to recover much faster as its share price surged up 3.87% today. KB Home's current daily volatility is 3.19 percent, with a beta of 0.0 and an alpha of 0.0 over DOW. As many millenniums are trying to avoid trump equities, it makes sense to concentrate on KB Home a little further and try to understand its current market patterns. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over three months ago
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Chances of KB Home to drop after the volatility boosts
KB Home has roughly 575.01 M in cash with 586.07 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 6.35. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. KB Home has an asset utilization ratio of 91.78 percent. This implies that the company is making $0.92 for each dollar of assets. An increasing asset utilization means that KB Home is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in KB Home, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding KB Home along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of KB Home's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of KB Home in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as KB Home. Your research has to be compared to or analyzed against KB Home's peers to derive any actionable benefits. When done correctly, KB Home's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in KB Home.

How important is KB Home's Liquidity

KB Home financial leverage refers to using borrowed capital as a funding source to finance KB Home ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. KB Home financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between KB Home's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for KB Home, but it might be worth checking our own buy vs. sell analysis

KB Home Correlation with Peers

Investors in KB Home can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in KB Home. Diversification will allow for the same portfolio return with reduced risk. The correlation table of KB Home and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities KB Home is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of KB Home for more details

Exercise or conversion by Jeffrey Mezger of 173605 shares of KB Home subject to Rule 16b-3

Legal trades by KB Home insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
KB Home insider trading alert for exercise of non-qualified stock options (right to buy) by Jeffrey Mezger, President and CEO, on 17th of November 2020. This event was filed by Kb Home with SEC on 2020-11-17. Statement of changes in beneficial ownership - SEC Form 4. Jeffrey Mezger currently serves as chairman of the board, president, chief executive officer of KB Home [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper look at KB Home

KB Home appears to be very steady, given 1 month investment horizon. KB Home retains Efficiency (Sharpe Ratio) of 0.11, which conveys that the company had 0.11% of return per unit of price deviation over the last month. Our outlook to estimating the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for KB Home, which you can use to evaluate future volatility of the entity. Please exercise KB Home standard deviation of 3.15, and Mean Deviation of 2.41 to check out if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will KB Home growth be reasonable after the rise?

KB Home current semi variance boosts over 8.84. KB Home shows above-average downside volatility for the selected time horizon. We advise investors to inspect KB Home further and ensure that all market timing and asset allocation strategies are consistent with the estimation of KB Home future alpha.

Our Final Take On KB Home

While some other entities within the residential construction industry are still a little expensive, even after the recent corrections, KB Home may offer a potential longer-term growth to stockholders. All things considered, as of the 22nd of September 2020, our overall 30 days buy vs. sell advice on the company is Sell. We believe KB Home is overvalued with below average probability of distress for the next two years.

About Contributor

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 Gabriel Shpitalnik do not own shares of KB Home. Please refer to our Terms of Use for any information regarding our disclosure principles.

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