KBH or PSMMY: Which Is the Better Value Stock Right Now?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 19 2024
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Source: NASDAQ.COM
Comparison of Stocks: Investors in the Building Products - Home Builders sector should consider KB Home (KBH) and Persimmon Plc (PSMMY), with KBH currently rated higher due to its stronger Zacks Rank (#2) and better value metrics, including a lower forward P/E ratio and a favorable PEG ratio.
Valuation Metrics: KBH has a Value grade of A based on key financial metrics such as a forward P/E of 9.46 and a PEG ratio of 0.80, while PSMMY has a Value grade of C with a forward P/E of 20.42 and a PEG ratio of 1.44, indicating that KBH is perceived as a better investment option for value investors.
Analyst Views on KBH
Wall Street analysts forecast KBH stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for KBH is 58.38 USD with a low forecast of 50.00 USD and a high forecast of 71.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
2 Buy
6 Hold
1 Sell
Hold
Current: 60.370
Low
50.00
Averages
58.38
High
71.00
Current: 60.370
Low
50.00
Averages
58.38
High
71.00
About KBH
KB Home is a homebuilding company, which builds a variety of new homes, including attached and detached single-family residential homes, townhomes and condominiums, designed primarily for first-time and first move-up, as well as second move-up and active adult homebuyers. It offers homes in development communities, in urban in-fill locations and as part of mixed-use projects. The Company's segments include homebuilding and financial services. The homebuilding segment is engaged in the acquisition and development of land primarily for residential purposes. The financial services segment offers various insurance products to its homebuyers in the markets where the Company builds homes and provides title services in certain of those markets. Its financial services also provide mortgage banking services, including residential consumer mortgage loan originations, to its homebuyers indirectly through KBHS Home Loans, LLC, an unconsolidated joint venture between the Company and a third party.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
