KB Home (KBH) Stock Trades Down, Here Is Why
What Happened?
Shares of homebuilder KB Home (NYSE:KBH) fell 7.1% in the pre-market session after the company reported third-quarter earnings results. Its backlog (a leading indicator of future demand) fell short, spooking investors.
On the other hand, KB Home beat analysts' revenue expectations during the quarter. Its full-year revenue guidance came in above Wall Street's estimates. Overall, this was a mixed but weaker quarter.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy KB Home? Access our full analysis report here, it’s free.
What The Market Is Telling Us
KB Home’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
KB Home is up 33.7% since the beginning of the year, and at $83.03 per share, it is trading close to its 52-week high of $89.63 from September 2024. Investors who bought $1,000 worth of KB Home’s shares 5 years ago would now be looking at an investment worth $2,564.
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