
KB Home (KBH) Stock Forecast & Price Target
KB Home (KBH) Analyst Ratings
Bulls say
KB Home's outlook is strengthened by anticipated greater-than-expected demand, which is expected to drive stronger sales volumes and pricing power, ultimately resulting in outsized earnings growth compared to prior forecasts. The company's strategic shift back to its Build-to-Order (BTO) model, which currently accounts for approximately 57% of its mix, is projected to enhance margins significantly, supporting earnings per share (EPS) estimates for fiscal year 2026 to grow by 3% even amidst lower order and homebuilding revenue forecasts. Additionally, KB Home's operating strategy includes aggressive cost management and share buybacks, which contribute further to a favorable financial trajectory as margins are expected to improve with an estimated homebuilding gross margin percentage rising to 19.2% in fiscal year 2025.
Bears say
The analysis highlights significant challenges facing KB Home, as evidenced by a projected decline in sales and earnings for FY’26. The company's expected revenue has decreased to $5.35 billion (-14% year-over-year), alongside a substantial reduction in earnings per share estimates to $4.05, which is 33% below prior consensus expectations. Additionally, a drop in order pace to 3.5 per month and a year-over-year decline of 4% in orders further underscores the company's weakening demand in the residential construction market.
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