KB Home Story

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KBH -- USA Stock  

USD 37.47  1.71  4.78%

In this post we will concentrate on KB Home. We will analyze why KB Home investors may still consider a stake in the business. On the 12th of January 2021 the company is traded for 33.04. KB Home has historical hype elasticity of -0.05. The average price elasticity to hype of competition is about -1.18. The entity is forecasted to decline in value after the next headline, with the price expected to drop to 33.66. The average volatility of media hype impact on KB Home stock price is huge, making predictions on the news or social media along less reliable. The price depreciation on the next news is expected to be -0.15%, whereas the daily expected return is now at -0.25 percent. The volatility of related hype on KB Home is about 68.69% with expected price after next announcement by competition of 31.86 Considering the 30-days investment horizon the next forecasted press release will be in about 9 days.
Published six days ago
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Will KB Home (NYSE:KBH) price continue dropping?
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 88.67 percent. This implies that the company is making $0.89 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.
The successful prediction of KB Home stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as KB Home, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of KB Home based on KB Home hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to KB Home's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to KB Home's related companies.

Use Technical Analysis to project KB Home expected Price

KB Home technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of KB Home technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of KB Home trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

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

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 reported the last year's revenue of 4.55 B. Total Income to common stockholders was 311.59 M with profit before taxes, overhead, and interest of 869.01 M.
 2020 2021 (projected)
Interest Expense559.8 K574.53 K
Gross Profit970.39 M792.04 M

Cost of Revenue Breakdown

KB Home Cost of Revenue is increasing over the last several years with slightly volatile swings. Cost of Revenue is predicted to flatten to about 3.6 B. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. KB Home Cost of Revenue is most likely to increase significantly in the upcoming years. The last year's value of Cost of Revenue was reported at 4.27 Billion
20131.99 Billion
20142.54 Billion
20153.04 Billion
20163.65 Billion
20173.74 Billion
20183.71 Billion
20204.27 Billion
20213.65 Billion

Another small drop for KB Home

Current skewness is at -0.15. As of the 12th of January 2021, KB Home owns the Standard Deviation of 3.19, market risk adjusted performance of (2.14), and Mean Deviation of 2.43. KB Home technical analysis lets you operate past data patterns with an objective to determine a pattern that forecasts the direction of the entity's future prices. Strictly speaking, you can use this information to find out if the entity will indeed mirror its model of historical prices and volume patterns, or the prices will eventually revert. We were able to break down and interpolate data for nineteen technical drivers for KB Home, which can be compared to its peers in the sector. Please verify KB Home downside deviation, treynor ratio, expected short fall, as well as the relationship between the variance and potential upside to decide if KB Home is priced some-what accurately, providing market reflects its prevailing price of 33.04 per share. Given that KB Home has jensen alpha of (0.17), we recommend you to check KB Home's latest market performance to make sure the company can sustain itself sooner or later.

The Bottom Line

While other entities in the residential construction industry are either recovering or due for a correction, KB Home may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor exit any shares of KB Home at this time. The KB Home risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to KB Home.

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 Raphi 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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