KB Home (KBH) was trading 6% higher on Friday morning after beating earnings expectations for Q4 2017.
The company reported earnings per share of $0.40 and total revenue of $871 million, compared to analyst expectations of $0.30 and $$887 million. The earnings from the quarter one year ago were $0.15, which is an increase of nearly threefold.
While KB Homes missed expectations, quarterly revenue did come in 6% higher when compared to a year ago.
Looking at the chart below, we use market cycles to project the price action for KB Homes stock (KBH). Our analysis suggests that this upward bump may be premature, as the declining phase of the current market cycle will last until May of this year.
Our price target is near $28.
The intermediate cycles are represented by the blue semi-circles at the bottom of the chart.
KB Home (KBH) Stock Chart with Weekly Bars
For an introduction to cycle analysis, check out our Stock Market Cycles video, or watch our weekly show askSlim Market Week show on our YouTube Channel.
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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
