KB Home (KBH) Stock: Buy, Sell, or Hold?
KBH - KB Home
$43.01
-0.35 (-0.81%)
▼
5d:
+2.58%
30d:
-11.48%
90d:
-22.67%
BUY
HIGH Confidence
Analysis Updated: Oct 21, 2026 12:00 AM ET
Earnings: Sep 22, 2026
0d
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: KBH shows strong fundamentals and good volume confirmation. Solid entry point despite oversold pricing.
✅ BUY SIGNAL: KBH shows strong fundamentals and good volume confirmation. Solid entry point despite oversold pricing.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$59.24
Based on 8.1% avg growth
INTRINSIC VALUE TODAY
$36.78
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 11.2x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: KBH is currently trading at $43.01, which is considered oversold relative to its 30-day fair value range of $43.27 to $48.18. The stock's valuation (Forward PE: 11.9) is in line with its historical norms (11.2). At these levels, the market is pricing in 2.3% annual earnings growth.
Technical Outlook: Technically, KBH is in a strong uptrend. Immediate support is located at $40.92, while resistance sits at $44.62.
Market Sentiment: KBH scores 84/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. Wall Street analysts see significant upside, with an average price target of $51.57 (+19.9%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, KBH is in a strong uptrend. Immediate support is located at $40.92, while resistance sits at $44.62.
Market Sentiment: KBH scores 84/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. Wall Street analysts see significant upside, with an average price target of $51.57 (+19.9%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$43.27 -
$48.18
Company Quality Score
70/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
91.4%
All Signals
- BULLISH: Price oversold vs 30-day range
- BULLISH: Strong technical setup (84/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($51.57)
- BULLISH: Expecting earnings turnaround to 2.3% growth with -20.0% revenue growth
- BULLISH: Bottoming setup score 84/100 — corrected, stabilizing, and turning up
Trading Range Analysis
30-Day Trading Range
$43.27 -
$48.18
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$40.92
Resistance Level
$44.62
Current Trend
Strong Uptrend
Technical data as of
Oct 21, 2026
Fundamental Context
Forward P/E (Next Year Est.)
11.95
Wall Street Target
$51.57
(+19.9%)
Revenue Growth (YoY)
-20.0%
Earnings Growth (YoY)
-34.7%
Profit Margin
4.4%
Valuation Premium vs History
+2.3% premium
PE vs Historical
12.0 vs 11.2
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+2.3%
(market-implied from PE analysis)
1-Year Target
$44.00
(+2%)
2-Year Target
$45.01
(+5%)
3-Year Target
$46.05
(+7%)
3-Yr Target (if PE normalizes)
(PE: 12→11)
PE COMPRESSION
$43.14
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 19.9, Growth: 12.1%)
$100.55
(+134%)
Base:
(SPY PE: 12.0, Growth: 12.1%)
$60.52
(+41%)
Bear:
(PE: 10.2, Growth: 12.1%)
$51.45
(+20%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (12x PE), but valuation improves significantly next year (12x PE) as earnings recover.
Trailing PE: 12.21 | Current EPS (TTM): $3.55
Bull Case
$48.34
(+12%)
Analyst growth 1.3%, PE expands to 13.4
Base Case
$43.94
(+2%)
Market implied 1.3%, PE stable at 12.2
Bear Case
$29.48
(-31%)
Severe decline -20.0%, PE contracts to 10.4
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: October 22, 2026 9:29 AM ET
Data refreshes hourly during market hours. Next update: 10:29 AM
Data refreshes hourly during market hours. Next update: 10:29 AM
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Technical Signals Check
Is KBH showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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