KB Home (NYSE:KBH) a Hold: FBR Capital

In a research note issued to investors, Steve Stelmach at FBR Capital Reiterated their Hold rating on KB Home (NYSE:KBH). The analyst placed a $17.00 price target on the stock which indicates a 11.26% upside to the last closing price. In the year following Stelmach’s ratings, the stocks covered yield an average return of 9.60% according to TipRanks.com. In the past year 21 out of 36 recommendations or 58% were successful.

There are 14 research firms in total that have issued ratings on KB Home (NYSE:KBH) within the past year. The consensus, or mean target price of the Wall Street analysts covering the firm is $15.892. The most recent revision to the consensus target was on 2015-03-27. Analysts are predicting that KB Home (NYSE:KBH) will report $0.11 earnings per share when they next issue their quarterly earnings release on or around 2015-06-26.

The consensus mean estimate is the calculated mean of all brokerage sell-side analysts that issue earnings estimates for the company. In the most recent quarter the company reported earnings of $0.07 that ended on 2015-02-28. KB Home (NYSE:KBH) has a 2.89 consensus analyst rating on the stock based on an arithmetical average of the 14 ratings given by the brokerage analysts covering the company. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell. The highest estimate of the 14 covering analysts sees the stock climbing to $20 within the next year while the lowest estimate places the 12-month target price at $13.

Looking ahead to full year estimates, analysts have placed the consensus earnings per share estimate for the current year at $0.96. The most bullish analyst sees the company reporting earnings per share of $1.32 while the most bearish analyst is predicting a current year EPS number of $0.78. Looking further ahead to the next three to five years, the long term EPS growth rate on a consensus basis is 1.8%, based on the 2 analysts providing longer term projections in their models.

KB Home is a builder of single-family residential homes, townhomes and condominiums. It constructs and sells homes homes through its operating divisions under the name KB Home. It operates homebuilding and financial services business serving homebuyers in various markets across the United States. Its homebuilding operations offer a variety of new homes designed primarily for first-time, move-up and active adult homebuyers, including attached and detached single-family residential homes, townhomes and condominiums. The Company’s financial services segment provides insurance services to its homebuyers in the same markets where it builds homes and provides title services in the majority of its markets located within its Central and Southeast homebuilding segments. In August 2013, KB Home acquired 40 acres of land in Eastvale, Calif. from Irvine-based Stratham Communities. In October 2013, KB Home acquired property at 72 Townsend in San Francisco.