D.R. Horton (DHI) closed at $156.76 in the latest trading session, marking a +1.44% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.69% for the day. On the other hand, the Dow registered a gain of 0.67%, and the technology-centric Nasdaq increased by 0.82%.
Shares of the homebuilder witnessed a gain of 0.51% over the previous month, beating the performance of the Construction sector with its loss of 3.09%, and the S&P 500’s loss of 0.31%.
The investment community will be closely monitoring the performance of D.R. Horton in its forthcoming earnings report. The company is predicted to post an EPS of $1.97, indicating a 24.52% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $6.71 billion, down 11.81% from the year-ago period.
DHI’s full-year Zacks Consensus Estimates are calling for earnings of $11.41 per share and revenue of $34.33 billion. These results would represent year-over-year changes of -1.38% and +0.24%, respectively.
Investors might also notice recent changes to analyst estimates for D.R Horton. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 5.18% decrease. D.R. Horton is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, D.R. Horton is holding a Forward P/E ratio of 13.54. This indicates a premium in contrast to its industry’s Forward P/E of 12.26.
It is also worth noting that DHI currently has a PEG ratio of 1.84. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. Building Products – Home Builders stocks are, on average, holding a PEG ratio of 1.84 based on yesterday’s closing prices.
The Building Products – Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 215, putting it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don’t forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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D.R. Horton, Inc. (DHI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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