PREVIEW: KB Home stock rises ahead of earnings

KB Home KBH.N shares advancing 0.4% on Mon ahead of qtrly results after the bell, with investors focused on the co's rev outlook following a downward revision three months ago

Analysts expect qtrly rev down 12% to $1.51 bln, per LSEG, with adjusted EPS seen at $1.46 vs $2.15 yr-ago, reflecting high mortgage rates and other challenges in the housing market

In March, KBH said it expected 2025 rev between $6.60 bln and $7.00 bln, down from prev forecast of $7 bln to $7.5 bln

KBH stock recently at 7 times expected earnings, in line with its avg over past five years, suggesting it may be fairly valued

KBH stock has dropped about 21% YTD, underperforming the S&P 500 .SPX, which has risen 2% in the same period

The stock is about 42% below its 52-week intraday high of $89.7 reached on September 19, 2024