
KB Home (KBH) Stock Forecast & Price Target
KB Home (KBH) Analyst Ratings
Bulls say
KB Home's stock outlook is positively influenced by anticipated demand that is expected to drive stronger sales volumes and pricing, leading to significant earnings growth compared to expectations. The company's fiscal year 2026 earnings per share estimate has increased by 3%, reflecting effective cost management and share buybacks, which serve to offset lower order and homebuilding revenue forecasts. Additionally, the forecast for fiscal year 2025 indicates an improvement in gross margins, with an expected growth margin percentage of 19.2%, suggesting enhanced profitability amidst market challenges.
Bears say
KB Home's financial outlook exhibits significant challenges, as evidenced by a projected 11% year-over-year revenue decline for FY'25, falling to $6.16 billion and below prior guidance, alongside a decrease in average selling prices for homes. Orders for FY'26 are expected to grow at a reduced rate of 5%, down from an earlier forecast of 7%, signaling potential stagnation in future sales momentum. Key downside risks include a slowdown in the overall housing market, declining consumer demand, particularly in California, rising mortgage rates, and increasing margin pressures due to elevated land costs, which collectively threaten the company's growth prospects and 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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