In the latest trading session, DR Horton (DHI) closed at $144.62, up +1.26% from the previous trading day’s closing price. The stock outperformed the 0.7% daily gain of the S&P 500. Elsewhere in the market, the Dow rose 0.01%, while the tech-heavy Nasdaq gained 1.1%.
Shares of the homebuilder have lost 0.96% over the past month, lagging the Construction sector’s gain of 1.57% and the S&P 500’s gain of 4.03%.
The investment community will be keeping an eye on DR Horton’s upcoming earnings performance. On that day, DR Horton is expected to report earnings of $3.80 per share, which would represent a decrease of 2.56% from the year-ago period. Meanwhile, our most recent consensus estimate is calling for revenue of $9.69 billion, which would represent a decrease of 0.34% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.26 per share and revenue of $36.97 billion. Those totals would represent changes of +3.18% and +4.27%, respectively, from last year.
Additionally, investors should also note any recent revisions to analyst estimates for DR Horton, as these revisions help indicate that short-term business trends are always changing. With this in mind, positive estimate revisions can be viewed as a sign of optimism for the company’s business outlook.
Our research shows that these estimate revisions are directly correlated to imminent stock price movements, and to take advantage of this, we have created the Zacks Rank, a proprietary model which incorporates these estimate changes and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.2% higher within the past month. DR Horton is currently sporting a Zacks Rank #3 (Hold).
Digging deeper into valuation, DR Horton’s current Forward P/E ratio is 10.02, which indicates a premium compared to its industry’s average Forward P/E of 8.62.
It’s also important to note that DHI currently has a PEG ratio of 0.71. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes into account a company’s expected earnings growth rate. The average PEG ratio for the Building Materials – Home Construction industry was 0.75 as of yesterday’s close.
The Building Products – Home Construction industry is part of the Construction sector. This industry is currently ranked #17 in the Zacks Industry Rank, putting it in the top 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups, and our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to track all of these stock-moving metrics and more by utilizing Zacks.com during the coming trading sessions.
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DR Horton, Inc. (DHI) : Free Stock Analysis Report
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