In the latest trading session, D.R. Horton (DHI - Free Report) closed at $78.82, marking a +0.7% move from the previous day. This move outpaced the S&P 500's daily loss of 0.15%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, lost 0.47%.
Coming into today, shares of the homebuilder had gained 5.24% in the past month. In that same time, the Construction sector gained 3.73%, while the S&P 500 gained 3.19%.
DHI will be looking to display strength as it nears its next earnings release, which is expected to be November 10, 2020. On that day, DHI is projected to report earnings of $1.75 per share, which would represent year-over-year growth of 29.63%. Our most recent consensus estimate is calling for quarterly revenue of $5.80 billion, up 16.56% from the year-ago period.
Any recent changes to analyst estimates for DHI should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account 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 generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.25% higher. DHI is currently a Zacks Rank #2 (Buy).
Investors should also note DHI's current valuation metrics, including its Forward P/E ratio of 11.77. For comparison, its industry has an average Forward P/E of 11.75, which means DHI is trading at a premium to the group.
Meanwhile, DHI's PEG ratio is currently 0.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 0.94 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 5, putting it in the top 2% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.