
KB Home (KBH) Stock Forecast & Price Target
KB Home (KBH) Analyst Ratings
Bulls say
KB Home is anticipated to benefit from greater-than-expected demand, leading to stronger sales volumes and improved pricing, which in turn is expected to drive outsized earnings growth. While fiscal year 2026 EPS estimates have been revised upward by 3%, management's strategy to shift back to its build-to-order (BTO) model is likely to enhance margins, as BTO projects currently exhibit significantly higher gross margins compared to the company’s historical averages. Furthermore, FY 2025 gross margin estimates have been adjusted to 19.2%, reflecting a robust operational response that combines cost management with strategic community openings to optimize profitability.
Bears say
KB Home is facing significant challenges, as evidenced by a projected decline in FY'25 revenues to $6.16 billion, reflecting an 11% year-over-year decrease and falling short of previous guidance. Furthermore, the company's FY'26 estimated earnings per share have been drastically revised downward by 26% to $4.05, which is 33% below prior consensus estimates, underscoring concerns over order declines and weaker sales forecasts. Additionally, the firm is anticipated to experience SG&A percentage deleverage, rising to 10.4% for FY'26, exacerbating profitability pressures amid declining sales trends.
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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