KB Home Up After Earnings, Likely To Head Higher
Steve Miller | Jun 28, 2019 09:23AM ET
Summary:
- KB Home (NYSE:KBH) rose 8% on Thursday after the company posted earnings that beat Wall Street expectations.
- Given that it is still early in the rising phase of its current market cycle, we believe the stock has more upside.
KB Home (KBH) Stock Weekly
The company reported earnings per share of $0.51 and total revenue of $1 billion, compared to analyst estimates of $0.39 and $943 million.
CEO Jeffrey Mezger explained that, "We are pleased with our second-quarter performance, as we made significant progress on our Returns-Focused Growth Plan. Two of the key objectives of this Plan are to grow our business and strengthen our balance sheet.”
Our analysis focuses on market cycles for KBH. We believe the stock is now in the rising phase of its current cycle with plenty more upside, as it is still early in the cycle. Our target is $28-$30 in the coming months. However, that is major resistance, with low odds it will go beyond that level.
For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel .
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