
KB Home (KBH) Stock Forecast & Price Target
KB Home (KBH) Analyst Ratings
Bulls say
KB Home's optimistic outlook stems from the expectation of greater-than-expected demand, which is anticipated to drive stronger sales volumes and firmer pricing, ultimately leading to outsized earnings growth. Despite forecasts of lower order and housing revenue estimates, the company's FY'26 earnings per share (EPS) estimate shows a 3% increase, supported by aggressive fixed cost reductions and stock buyback initiatives. Additionally, the company's gross margin for FY'25 is projected to rise to 19.2%, indicating improved profitability despite a slight year-over-year decline in margin percentage.
Bears say
KB Home's financial outlook appears negative, primarily due to projected declines in sales and orders, with estimated FY’25 revenues falling to $6.16 billion, reflecting an 11% year-over-year decrease. The significant risks include a slowdown in the housing market and waning consumer demand, particularly in California, which contributes over one-third of the company's revenue, driven by factors such as worsening affordability and rising mortgage rates. Furthermore, KB Home faces margin pressures from increasing land costs and limited land availability in key markets, which could hinder its growth potential and impact overall market performance.
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
Start investing in KB Home (KBH)
Order type
Buy in
Order amount
Est. shares
0 shares