Why KB Home (KBH) Performed Worst On Tuesday?

We recently published a list of Pulse of The Market: Tuesday’s 10 Worst Performers. In this article, we are going to take a look at where KB Home (NYSE:KBH) stands against other Tuesday’s worst performers.

Wall Street finished Tuesday’s trading in a lackluster fashion, with all major indices ending in the green territory, but only eking out small gains.

The tech-heavy Nasdaq rallied the most, up by 0.46 percent, followed by the S&P 500 with 0.16 percent, and the Dow Jones with a marginal 0.01 percent.

The muted trading spilled over into individual stocks, with 10 in particular posting significant losses. In this article, let’s explore the top 10 companies that performed poorly on Tuesday.

To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume.

An elevated view of a suburban neighborhood of newly built attached single-family residential homes.

KB Home (NYSE:KBH)

KB Home dropped its share prices by 5.21 percent on Tuesday to close at $58.57 apiece as investor sentiment was dampened by disappointing earnings performance in the first quarter ending February 2025.

In a statement, KBH said net income for the quarter dropped by 21.5 percent to $109 million from $138 million in the same period a year earlier, as revenues dipped by 5 percent to $1.391 billion from $1.467 billion.

Further adding to the already pessimistic sentiment was the company’s bearish outlook for the full year.

“While our sales trends have improved, we are reducing our revenue guidance for fiscal 2025 primarily to reflect the lower level of net orders we generated in the first quarter. I am confident that our experienced team will effectively navigate the variability in market conditions and execute our objectives for this year while continuing to deliver high levels of customer satisfaction,” said KBH Chairman and CEO Jeffrey Mezger.

For the full year, KBH expects revenues to settle somewhere between $6.6 billion and $7 billion.

Overall, KBH ranks 5th on our list of Tuesday’s worst performers. While we acknowledge the potential of KBH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as KBH but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.