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

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D.R. Horton (DHI - Free Report) closed the most recent trading day at $88.64, moving +0.86% from the previous trading session. This change outpaced the S&P 500's 0.85% gain on the day.

Heading into today, shares of the homebuilder had lost 7.08% over the past month, lagging the Construction sector's loss of 3.74% and the S&P 500's loss of 0.37% in that time.

DHI will be looking to display strength as it nears its next earnings release. On that day, DHI is projected to report earnings of $3.52 per share, which would represent year-over-year growth of 57.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.23 billion, up 28.62% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.25 per share and revenue of $27.76 billion, which would represent changes of +75.51% and +36.65%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for DHI. Recent revisions tend to reflect the latest 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. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. DHI is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, DHI is currently trading at a Forward P/E ratio of 7.81. For comparison, its industry has an average Forward P/E of 6.57, which means DHI is trading at a premium to the group.

Investors should also note that DHI has a PEG ratio of 0.87 right now. 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 0.87 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 37, putting it in the top 15% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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