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D.R. Horton (DHI) Dips More Than Broader Markets: What You Should Know

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D.R. Horton (DHI - Free Report) closed the most recent trading day at $69.99, moving -0.58% from the previous trading session. This move lagged the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.23%, and the tech-heavy Nasdaq lost 0.38%.

Heading into today, shares of the homebuilder had lost 5.5% over the past month, lagging the Construction sector's gain of 2.58% and the S&P 500's gain of 2.78% in that time.

DHI will be looking to display strength as it nears its next earnings release, which is expected to be January 26, 2021. The company is expected to report EPS of $1.71, up 72.73% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.64 billion, up 40.19% from the year-ago period.

DHI's full-year Zacks Consensus Estimates are calling for earnings of $7.92 per share and revenue of $25.45 billion. These results would represent year-over-year changes of +23.56% and +25.28%, respectively.

Investors should also note any recent changes to analyst estimates for DHI. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. DHI is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, DHI is holding a Forward P/E ratio of 8.89. This valuation marks a discount compared to its industry's average Forward P/E of 9.28.

We can also see that DHI currently has a PEG ratio of 0.72. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Home Builders industry currently had an average PEG ratio of 0.6 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 28, which puts it in the top 11% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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