KB HOME ● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at USD 23.43 USD in weekly data.
● The close medium term support offers good timing for purchasing the stock.
● The group usually releases upbeat results with huge surprise rates.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.73 for the 2018 fiscal year.
● With a P/E ratio at 12.34 for the current year and 7.45 for next year, earnings multiples are highly attractive compared with competitors.
● For the last week, the earnings per share forecast has been revised upwards. According to recent estimates, analysts give a positive overview of the stock
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● The company is not the most generous with respect to shareholders' compensation.
● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 29.52 USD
