KBH stock rose 14% in morning trade on January 13, 2022, after a couple of analysts made bullish statements about the stock.
KB Home price target raised to $73 from $60 at Wedbush
On January 13, 2022, Wedbush analyst Jay McCanless raised the firm’s price target on KB Home to $73 from $60 and keeps an Outperform rating on the shares following quarterly results. The analyst notes that 2022’s gross margin and revenue guidance easily exceeded his estimates. Management’s fiscal 2022 community growth outlook was in line with his unchanged +22% forecast, and KB’s pricing is staying ahead of cost increases.
KB Home price target raised to $55 from $46 at RBC Capital
On January 13, 2022, RBC Capital analyst Mike Dahl raised the firm’s price target on KB Home to $55 from $46 and keeps an Outperform rating on the shares. The company’s FY22 upside margin guidance is “narrative-altering” and should drive improved investor sentiment toward the stock, the analyst tells investors in a research note. Dahl also raises his FY22 EPS view to $10.24 from $8.36 and FY23 view to $11.14 from $8.82.
KB Home Reports Q4
On January 12, 2022, KB Home reported Q4 EPS of $1.91 versus the consensus estimate of $1.76. The company reported Q4 revenue of $1.68B versus the consensus estimate of $1.71B.
CEO Jeffrey Mezger says: “We delivered outstanding growth in revenues and margins in our 2021 fourth quarter, leading to a more than 70% year-over-year increase in earnings per share. With the strong finish to 2021, we generated a full-year return on equity of approximately 20%. During the past year, we significantly expanded our production capabilities as we scale our business to meet the healthy demand that is driving the housing market and align our starts to net orders. Although operating conditions in 2021 were extremely challenging, with labor shortages and supply chain disruptions, along with municipal and related delays, our teams remained resilient in working through solutions with our trade partners and suppliers. This year marks our 65th anniversary, and we begin 2022 well-positioned to continue to deliver returns-focused growth. Our nearly $5 billion in backlog value and projected substantial year-over-year increase in community count support significant revenue growth this year. Combined with a meaningful acceleration of our operating margin that we anticipate this year, we expect to produce a return on equity above 26%”.
📺 KB Homes on the move after reporting earnings
📈 KBH Stock Technical Analysis
The long and short term trends are both neutral. KBH is part of the Household Durables industry. There are 68 other stocks in this industry, KBH did better than 58% of them. KBH is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so KBH is lagging the market slightly.
There is a support zone ranging from 44.61 to 45.14. This zone is formed by a combination of multiple trend lines in multiple time frames. There is also a support zone ranging from 42.31 to 42.96. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames.
KBH has an average technical rating and it also does not offer a high quality setup at the moment. Prices have been extended to the upside lately. For a nice entry it is better to wait for a consolidation. Click here to sign up for email alerts on when KBH stock consolidates and is a good long entry.