
KB Home (KBH) Stock Forecast & Price Target
KB Home (KBH) Analyst Ratings
Bulls say
KB Home's positive outlook is supported by anticipated demand driving stronger sales volumes and firmer home pricing, which should lead to outsized earnings growth in the coming years. The company's earnings per share estimate for fiscal year 2026 has been adjusted upwards by 3% despite lower order and housing revenue projections, showcasing resilience through fixed cost management and stock buybacks. Furthermore, KB Home's strategic emphasis on a build-to-order (BTO) model, together with new community openings, is expected to enhance margins significantly, with gross margins projected at 19.2% for fiscal year 2025, indicating robust operational performance.
Bears say
The analysis of KB Home reveals a concerning financial outlook driven by a significant decline in key performance metrics, including a projected 26% reduction in FY'26 earnings per share estimate to $4.05, which is substantially below prior consensus estimates. Additionally, revenue for FY’25 is estimated to decrease by 11% year-over-year to $6.16 billion, along with a contrasting decline in home closings and average selling prices, indicating weakening demand in the residential construction market. Furthermore, anticipated order growth has been revised down to just 1%, reflecting a slowdown in market activity that poses substantial challenges for the company's future profitability and operational efficiency.
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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