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D.R. Horton (DHI) Declines More Than Market: Some Information for Investors

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D.R. Horton (DHI - Free Report) ended the recent trading session at $152.71, demonstrating a -0.57% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.11% for the day. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq lost 0.41%.

Coming into today, shares of the homebuilder had gained 5.98% in the past month. In that same time, the Construction sector gained 8.1%, while the S&P 500 gained 2.7%.

The investment community will be closely monitoring the performance of D.R. Horton in its forthcoming earnings report. The company is forecasted to report an EPS of $3.09, showcasing a 13.19% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $8.29 billion, showing a 3.98% escalation compared to the year-ago quarter.

DHI's full-year Zacks Consensus Estimates are calling for earnings of $14.19 per share and revenue of $36.64 billion. These results would represent year-over-year changes of +2.68% and +3.33%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for D.R. Horton. 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.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. D.R. Horton presently features a Zacks Rank of #3 (Hold).

In terms of valuation, D.R. Horton is presently being traded at a Forward P/E ratio of 10.83. This denotes a premium relative to the industry's average Forward P/E of 9.5.

It is also worth noting that DHI currently has a PEG ratio of 0.87. 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. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 0.87.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% of all 250+ industries.

The Zacks Industry Rank is ordered 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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