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D.R. Horton (DHI) Gains As Market Dips: What You Should Know
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In the latest trading session, D.R. Horton (DHI - Free Report) closed at $105.72, marking a +0.44% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.06%. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq lost 0.3%.
Prior to today's trading, shares of the homebuilder had lost 0.43% over the past month. This has lagged the Construction sector's gain of 2.49% and the S&P 500's gain of 5.76% in that time.
D.R. Horton will be looking to display strength as it nears its next earnings release, which is expected to be February 2, 2022. On that day, D.R. Horton is projected to report earnings of $2.81 per share, which would represent year-over-year growth of 31.31%. Meanwhile, our latest consensus estimate is calling for revenue of $6.73 billion, up 13.37% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.25 per share and revenue of $33.76 billion, which would represent changes of +24.89% and +21.55%, respectively, from the prior year.
Any recent changes to analyst estimates for D.R. Horton should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. D.R. Horton is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, D.R. Horton is currently trading at a Forward P/E ratio of 7.39. Its industry sports an average Forward P/E of 5.84, so we one might conclude that D.R. Horton is trading at a premium comparatively.
Meanwhile, DHI's PEG ratio is currently 0.73. 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 industry currently had an average PEG ratio of 0.27 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 116, putting it in the top 46% 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.
View the Zacks #1 Rank List
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D.R. Horton (DHI) Gains As Market Dips: What You Should Know
In the latest trading session, D.R. Horton (DHI - Free Report) closed at $105.72, marking a +0.44% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.06%. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq lost 0.3%.
Prior to today's trading, shares of the homebuilder had lost 0.43% over the past month. This has lagged the Construction sector's gain of 2.49% and the S&P 500's gain of 5.76% in that time.
D.R. Horton will be looking to display strength as it nears its next earnings release, which is expected to be February 2, 2022. On that day, D.R. Horton is projected to report earnings of $2.81 per share, which would represent year-over-year growth of 31.31%. Meanwhile, our latest consensus estimate is calling for revenue of $6.73 billion, up 13.37% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.25 per share and revenue of $33.76 billion, which would represent changes of +24.89% and +21.55%, respectively, from the prior year.
Any recent changes to analyst estimates for D.R. Horton should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. D.R. Horton is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, D.R. Horton is currently trading at a Forward P/E ratio of 7.39. Its industry sports an average Forward P/E of 5.84, so we one might conclude that D.R. Horton is trading at a premium comparatively.
Meanwhile, DHI's PEG ratio is currently 0.73. 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 industry currently had an average PEG ratio of 0.27 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 116, putting it in the top 46% 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.