KB Home

KBH · NYSE

$43.36+$0.77 (+1.81%)TodayMarket closed · Oct 20, 7:30 PM ET

Prev close $42.59

KBH analyst rating

HoldConsensus of 15 analysts over the last 12 months. 20% rate it a buy.

Strong buy0
Buy3
Hold8
Underperform2
Sell2

12-month price target · 15 analysts

Average $56.35 (+30.0% upside)

Low: $43.43
Now: $43.36
High: $73.50

Upgrades and downgrades

The latest rating actions, newest first

KBH analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Wells Fargo	Oct 16, 2026	Maintains	Underweight	$50.00 → $42.00	47%
StoneX	Oct 16, 2026	Initiates	Hold	—	33%
RBC Capital	Oct 15, 2026	Maintains	Sector Perform	$50.00 → $47.00	59%
Melius Research	Oct 6, 2026	Initiates	Sell	$43.00	60%
Keefe, Bruyette & Woods	Oct 5, 2026	Maintains	Market Perform	$65.00 → $54.00	51%
Morgan Stanley	Oct 1, 2026	Initiates	Underweight	$39.00	29%
Truist Securities	Sep 23, 2026	Maintains	Hold	$55.00 → $50.00	0%
Evercore ISI Group	Sep 23, 2026	Maintains	In-Line	$62.00 → $59.00	49%
RBC Capital	Sep 23, 2026	Maintains	Sector Perform	$53.00 → $50.00	59%
Barclays	Sep 23, 2026	Maintains	Overweight	$57.00 → $49.00	52%

The case for and against

Updated Oct 16, 2026

Bull case

KB Home is favorably positioned because its build-to-order model and focus on first-time and first move-up buyers support personalization, healthier option-driven margins, and a BTO mix that rose to 74% of closings in F3Q26 from 60% in 2Q. Despite revenues of $1.3 billion and a 20% y/y decline, F3Q26 EPS of $1.05 beat estimates on a 16.8% gross margin, with upside from gross margin, gain on sale/JV income, interest income, and financial services. Looking ahead, FY28 estimates call for EPS of $4.50 and revenue of $5.5 billion, aided by 3 million annual share repurchases and a projected gross margin rebound to 16.6%, while sustainability efforts and affordable-home positioning add strategic depth.

Bear case

KB Home is facing a deteriorating fundamental backdrop as higher rates, affordability pressure, and weaker California demand have slowed traffic and orders, with 3Q26 orders down 12% year over year to 2,604 and sales per community falling 15%. Management’s shift toward a less profitable mix, especially in Southern California, is compressing margins, cutting FY26 housing revenue guidance to $4.9 billion to $5.1 billion and implying a 16.3% gross margin midpoint, while SG&A leverage worsens as community openings lag. The balance sheet also looks stretched, with debt to equity back over 50%, cash at the lowest level since 2006, and capital returns continuing despite cash generation lagging, increasing downside risk if housing demand softens further.

Information on this page is provided for informational purposes only and is not a recommendation to buy, sell or hold any security. Investing involves risk, including possible loss of principal. Market data is delayed at least 15 minutes and is provided without warranty. Analyst ratings, price targets and company data come from third-party sources. Past performance does not guarantee future results.