KB Home Story

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KBH -- USA Stock  

USD 48.08  0.14  0.29%

KB Home Earnings before Tax are most likely to increase significantly in the upcoming years. The last year's value of Earnings before Tax was reported at 418.65 Million. The current Free Cash Flow is estimated to increase to about 349.7 M, while Revenue Per Employee is projected to decrease to roughly 1.9 M. The intention for this outlook is to forecast a future value of KB Home using technical analysis. What exactly are KB Home stockholders should expect in April?
Published over two weeks ago
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Is KB Home (NYSE:KBH) outlook positive for April 2021?
On a scale of 0 to 100, KB Home holds a performance score of 9. The firm owns a Beta (Systematic Risk) of 0.4162, which conveys possible diversification benefits within a given portfolio. Let's try to break down what KB Home's beta means in this case. As returns on the market increase, KB Home returns are expected to increase less than the market. However, during the bear market, the loss on holding KB Home will be expected to be smaller as well. Although it is vital to follow KB Home existing price patterns, it is good to be conservative about what you can do with the information regarding equity price patterns. The way in which we are estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing KB Home technical indicators, you can at this moment evaluate if the expected return of 0.4% will be sustainable into the future. Please exercises KB Home treynor ratio, expected short fall, and the relationship between the jensen alpha and potential upside to make a quick decision on whether KB Home current price history will revert.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as KB Home. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for KB Home

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

Payment of 32486 shares by Jeff Kaminski 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 payment of common stock by Jeff Kaminski, EVP & Chief Financial Officer, on 19th of February 2021. This event was filed by Kb Home with SEC on 2021-02-19. Statement of changes in beneficial ownership - SEC Form 4. Jeff Kaminski currently serves as chief financial officer, executive vice president 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.

Breaking down KB Home Further

The current rise in KB Home short term price appreciation may raise some interest from stockholders. The stock closed today at a share price of 43.39 on 2,199,852 in trading volume. The company directors and management have successfully maneuvered the entity at convenient times to take advantage of all market conditions in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.1. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from KB Home partners.

Returns Breakdown

Return on Investment7.45
Return on Assets0.0532
Return on Equity0.12
Return Capital0.0719
Return on Sales0.11

Momentum Analysis of KB Home suggests possible reversal in April

Current kurtosis is at 0.44.
As of the 24th of March, KB Home owns the Mean Deviation of 2.39, standard deviation of 3.06, and Market Risk Adjusted Performance of 0.9909. 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 have analyzed 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 43.39 per share. Given that KB Home has jensen alpha of 0.3625, we recommend you to check KB Home's latest market performance to make sure the company can sustain itself sooner or later.

Our Conclusion on KB Home

While many other companies 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. To conclude, as of the 24th of March 2021, our analysis shows that KB Home slowly supersedes the market. The company is fairly valued and projects below average odds of distress for the next 2 years. Our latest 30 days buy-sell recommendation on the company is Buy.

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 Achuva Shats 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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