Back to top

Image: Bigstock

D.R. Horton (DHI) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

D.R. Horton (DHI - Free Report) closed at $66.41 in the latest trading session, marking a -1.38% move from the prior day. This change lagged the S&P 500's daily gain of 0.71%. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 0.95%.

Coming into today, shares of the homebuilder had lost 8.75% in the past month. In that same time, the Construction sector gained 0.89%, while the S&P 500 gained 0.17%.

Wall Street will be looking for positivity from DHI as it approaches its next earnings report date. This 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. Meanwhile, our latest consensus estimate is calling for revenue of $5.64 billion, up 40.19% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.92 per share and revenue of $25.45 billion. These totals would mark changes of +23.56% and +25.28%, respectively, from last year.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. DHI is currently a Zacks Rank #1 (Strong Buy).

Investors should also note DHI's current valuation metrics, including its Forward P/E ratio of 8.5. This valuation marks a premium compared to its industry's average Forward P/E of 7.72.

It is also worth noting that DHI currently has a PEG ratio of 0.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Home Builders was holding an average PEG ratio of 0.47 at yesterday's closing price.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


D.R. Horton, Inc. (DHI) - free report >>

Published in