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%.
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
KBH moved below its 50-day moving average on August 14, 2026 date and that indicates a change from an upward trend to a downward trend. In of 37 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on August 17, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on KBH as a result. In of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for KBH turned negative on August 12, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 52 similar instances when the indicator turned negative. In of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at .
The 10-day moving average for KBH crossed bearishly below the 50-day moving average on August 19, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 August 05, 2026. 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 Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 64 cases where KBH's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The 50-day moving average for KBH moved above the 200-day moving average on August 19, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where KBH advanced for three days, in of 303 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously 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 (0.894) is normal, around the industry mean (2.108). P/E Ratio (13.472) is within average values for comparable stocks, (24.141). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (3.514). Dividend Yield (0.018) settles around the average of (0.025) among similar stocks. P/S Ratio (0.652) is also within normal values, averaging (27.737).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. KBH’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. KBH’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 64, placing this stock worse than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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 average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a constructor and seller single family homes as well as condominium complexes
Industry Homebuilding