Let’s dig into the relative performance of KB Home (NYSE: KBH) and its peers as we unravel the now-completed Q3 home builders earnings season.
Traditionally, homebuilders have built competitive advantages with economies of scale that lead to advantaged purchasing and brand recognition among consumers. Aesthetic trends have always been important in the space, but more recently, energy efficiency and conservation are driving innovation. However, these companies are still at the whim of the macro, specifically interest rates that heavily impact new and existing home sales. In fact, homebuilders are one of the most cyclical subsectors within industrials.
The 9 home builders stocks we track reported a softer Q3. As a group, revenues missed analysts’ consensus estimates by 1.7%.
Thankfully, share prices of the companies have been resilient as they are up 6% on average since the latest earnings results.
KB Home (NYSE: KBH)
The first homebuilder to be listed on the NYSE, KB Home (NYSE: KBH) is a homebuilding company targeting the first-time home buyer and move-up buyer markets.
KB Home reported revenues of $1.30 billion, down 20% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but full-year revenue guidance missing analysts’ expectations.
"We also made significant progress and have now achieved our goal of returning to a predominantly Built to Order business, with BTO homes representing nearly three-quarters of our deliveries in the third quarter, which contributed to our sequentially higher housing gross profit margin," said Robert McGibney, President and Chief Executive Officer. "In addition, we generated year-over-year community count growth. This reflects a significant number of new community openings over the past year that will help support our sales efforts going forward, along with a continued focus on balancing price and pace for the best possible return."
KB Home pulled off the highest full-year guidance raise but had the slowest revenue growth in the group. Unsurprisingly, the stock is up 5% since reporting and currently trades at $51.00.
Read our full report on KB Home here, it’s free.
Best Q3: LGI Homes (NASDAQ: LGIH)
Based in Texas, LGI Homes (NASDAQ: LGIH) is a homebuilding company specializing in constructing affordable, entry-level single-family homes in desirable communities across the United States.
LGI Homes reported revenues of $437.5 million, up 10.3% year on year, outperforming analysts’ expectations by 1%. The business had a very strong quarter with a beat of analysts’ EPS estimates.
LGI Homes achieved the fastest revenue growth of the whole group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 3.8% since reporting. It currently trades at $45.61.
Is now the time to buy LGI Homes? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: NVR (NYSE: NVR)
Known for its unique land acquisition strategy, NVR (NYSE: NVR) is a respected homebuilder and mortgage company in the United States.
NVR reported revenues of $2.40 billion, down 7.9% year on year, falling short of analysts’ expectations by 6.4%. It was an underwhelming quarter as it posted a significant miss of analysts’ EPS estimates.
Interestingly, the stock is up 6.3% since the results and currently trades at $6,270.
Read our full analysis of NVR’s results here.
PulteGroup (NYSE: PHM)
Having delivered over 850,000 homes since its founding in 1950, PulteGroup (NYSE: PHM) is one of America's largest homebuilders, constructing single-family homes, townhouses, and condominiums for first-time, move-up, and active adult buyers across 46 markets in 25 states.
PulteGroup reported revenues of $3.97 billion, down 9.8% year on year. This print lagged analysts’ expectations by 4.2%. Overall, it was an underwhelming quarter as it also logged a significant miss of analysts’ EPS estimates.
The stock is up 17.4% since reporting and currently trades at $132.48.
Read our full, actionable report on PulteGroup here, it’s free.
Meritage Homes (NYSE: MTH)
Originally founded in 1985 in Arizona as Monterey Homes, Meritage Homes (NYSE: MTH) is a homebuilder specializing in designing and constructing energy-efficient and single-family homes in the US.
Meritage Homes reported revenues of $1.18 billion, down 17.4% year on year. This result came in 9.4% below analysts’ expectations. It was an underwhelming quarter as it also recorded a significant miss of analysts’ EPS estimates.
Meritage Homes had the weakest performance against analyst estimates among its peers. The stock is up 10.4% since reporting and currently trades at $68.49.
Read our full, actionable report on Meritage Homes here, it’s free.
Market update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
