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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 $80.96, moving -1.75% from the previous trading session. This move lagged the S&P 500's daily loss of 1.3%. Elsewhere, the Dow lost 0.69%, while the tech-heavy Nasdaq lost 0.45%.

Coming into today, shares of the homebuilder had lost 3.09% in the past month. In that same time, the Construction sector lost 4.58%, while the S&P 500 lost 5.33%.

D.R. Horton will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.38, up 33.6% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.61 billion, up 18.06% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.80 per share and revenue of $35.05 billion. These totals would mark changes of +38.48% and +26.21%, respectively, from last year.

Any recent changes to analyst estimates for D.R. Horton should also be noted by investors. 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.

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 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. D.R. Horton is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, D.R. Horton is holding a Forward P/E ratio of 5.21. Its industry sports an average Forward P/E of 4.27, so we one might conclude that D.R. Horton is trading at a premium comparatively.

Meanwhile, DHI's PEG ratio is currently 0.5. 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 was holding an average PEG ratio of 0.5 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 37, which puts it in the top 15% 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.

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