KB Home (KBH) Stock Analysis
Recovery setup
Consumer Cyclical · Residential Construction
Sell if holding. Engine safety override at $54.10: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.0/10. Specifically: High short interest: 18%; Elevated put/call ratio: 5.88; Below-average business quality.
KB Home is one of the largest U.S. homebuilders, operating in 9 states and 49 markets primarily serving first-time and first move-up buyers through a Built to Order approach. Homebuilding accounts for 99.6% of 2025 revenues, with operations concentrated in California, Florida,... Read more
Sell if holding. Engine safety override at $54.10: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.0/10. Specifically: High short interest: 18%; Elevated put/call ratio: 5.88; Below-average business quality. Chart setup: Death cross but MACD improving, RSI 71. Score 4.0/10, high confidence.
Passes 4/9 gates (clean insider activity, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: aggressive.
About KB Home
About KB Home
KB Home held 64,612 lots owned or controlled across four homebuilding segments at November 30, 2025—down from 76,703 a year earlier—with West Coast at 20,750 lots, Central at 20,614, Southeast at 12,106, and Southwest at 11,142. Homebuilding operations accounted for 99.6% of total revenues in 2025, with the company delivering homes across nine states and 49 major markets. First-time and first move-up homebuyers have averaged more than 75% of annual deliveries for over a decade, with California generating the highest proportion of revenues.
KB Home builds homes primarily under the Built to Order process, where construction begins only after a signed purchase contract and preliminary credit approval. In 2025, approximately 55% of homes delivered were Built to Order, below the historical 60–70% average due to supply chain disruptions in prior years; the company intends to bring that mix closer to historical levels in 2026. Revenue per home reflects a base price plus design options selected at KB Home Design Studios in each served market. The company uses fixed-price contracts with larger trade partners to moderate construction cost inflation. Independent contractors perform essentially all land development and home construction, exposing the company to availability and performance risk in a tight labor market. Financial services—mortgage banking through KBHS, a joint venture with GR Alliance (a subsidiary of Guaranteed Rate, Inc.)—contributed 0.4% of 2025 revenues.
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California presents the most concentrated geographic risk. The 10-K notes that the business is presently concentrated in California, Florida, Nevada, and Texas, with California generating the highest proportion of revenues. Effective 2026, California's new energy efficiency standards require all new residences to be electric-ready for heating, cooling, cooking, clothes drying, and water heating systems. Solar installation disruptions in 2024–2025, driven by federal tax credit changes and California net metering amendments, caused delivery delays, and the state's regulated permitting and wildfire-protection requirements have increased land development costs and entitlement timelines.
See also: Consumer Cyclical · Residential Construction
From KB Home's most recent 10-K filing, extracted June 10, 2026.
Recent developments
updated 2026-06-15Recent Developments — KB Home
Latest news
- NEWS Top Wall Street Forecasters Revamp KB Home Expectations Ahead Of Q2 Earnings — benzinga Jun 17, 2026 positive
- NEWS How To Earn $500 A Month From KB Home Stock Ahead Of Q2 Earnings — benzinga Jun 16, 2026 neutral
- NEWS Truist Securities Maintains Hold on KB Home, Lowers Price Target to $50 — benzinga May 4, 2026 negative
- NEWS KB Home Robert R. Dillard Resigns As CFO Effective May 8, 2026 — benzinga May 1, 2026 negative
- NEWS Evercore ISI Group Maintains In-Line on KB Home, Raises Price Target to $54 — benzinga Apr 13, 2026 positive
Generated 2026-06-17T08:56:48Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHGeographicCalifornia, Florida, Nevada and Texas10-K Item 1A: 'our business is presently concentrated in California, Florida, Nevada and Texas'
- HIGHGeographicCalifornia10-K Item 1A: 'We generate the highest proportion of our revenues from and make significant inventory investments in our California operations.'
Material Events(8-K, last 90d)
- 2026-05-01Item 5.02HIGHCFO Robert R. Dillard resigned effective May 8, 2026. No successor named. Departure not related to any disagreement with KB Home or its financial or accounting policies.SEC filing →
- 2026-02-26Item 5.02MEDIUMAmendment discloses Robert McGibney's compensation as new President and CEO (effective March 1, 2026); Jeffrey Mezger transitions to Executive Chairman. Clean CEO succession with named successor.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
4 floor-breakers
Revenue shrinking — -22.6% YoY. Growth thesis broken unless recovery story develops.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $54.10: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.0/10. Specifically: High short interest: 18%; Elevated put/call ratio: 5.88; Below-average business quality. Chart setup: Death cross but MACD improving, RSI 71. Prior stop was $50.78. Score 4.0/10, high confidence.
Take-profit target: $54.62 (+1.0% upside). Prior stop was $50.78. Stop-loss: $50.78.
Concentration risk — Geographic: California, Florida, Nevada and Texas; Concentration risk — Geographic: California; Target reached (-11.3% upside).
KB Home trades at a P/E of 10.4 (forward 12.1). TrendMatrix value score: 6.9/10. Verdict: Sell.
25 analysts cover KBH with a consensus score of 2.7/5. Average price target: $55.
What does KB Home do?KB Home is one of the largest U.S. homebuilders, operating in 9 states and 49 markets primarily serving first-time and...
KB Home is one of the largest U.S. homebuilders, operating in 9 states and 49 markets primarily serving first-time and first move-up buyers through a Built to Order approach. Homebuilding accounts for 99.6% of 2025 revenues, with operations concentrated in California, Florida, Nevada, and Texas. The company owned or controlled 64,612 lots at November 30, 2025.