KB Home (KBH, $28.35) beats Q2 earnings expectations
KB Home posted second quarter earnings that surpassed analysts’ expectations.
The homebuilding company’s earnings for the quarter came in at $2.32 a share, handily topping the $2.04 expected by analysts polled by FactSet. Earnings per share were +55% higher than the year-ago quarter.
Revenue rose +19% from the year-ago quarter to $1.72 billion, also exceeded consensus expectations of $1.65 billion (based on FactSet poll).
While the number of homes delivered of 3,469 units was flat compared to the year-ago quarter, the average selling price rose +21% to $494,300.
Net orders fell -9% from the prior-year quarter to 3,914 homes. However, the value of net orders climbed +4% to $2.12 billion.
The company’s housing gross margin widened by +390 basis points (bps) year over year to 25.3%, on the back of strength in pricing due to strong housing demand couple with limited supply of available homes for sale and the lower amortization of previously-capitalized interest. This was partially offset by increased construction costs and higher expenses made towards current operations and expected growth.
Looking ahead, the company now projects housing revenues in the range of $7.30-$7.50 billion for fiscal 2022, narrower than the previous forecast range of $7.20-$7.60 billion. It expects average selling price of homes to be $500,000. Homebuilding operating margin (assuming no inventory-related charges) is predicted to improve 16-16.6%.
KBH in upward trend: price rose above 50-day moving average on November 25, 2025
KBH moved above its 50-day moving average on November 25, 2025 date and that indicates a change from a downward trend to an upward trend. In of 37 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 21, 2025. You may want to consider a long position or call options on KBH as a result. In of 96 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for KBH just turned positive on November 24, 2025. Looking at past instances where KBH's MACD turned positive, the stock continued to rise in of 52 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where KBH advanced for three days, in of 305 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for KBH moved out of overbought territory on November 28, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator moved out of overbought territory. In of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KBH declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
KBH broke above its upper Bollinger Band on November 25, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.068) is normal, around the industry mean (19.851). P/E Ratio (9.048) is within average values for comparable stocks, (55.380). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.478). Dividend Yield (0.015) settles around the average of (0.037) among similar stocks. P/S Ratio (0.706) is also within normal values, averaging (24.861).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 69, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. KBH’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a constructor and seller single family homes as well as condominium complexes
Industry Homebuilding
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