Back to top

Image: Bigstock

D.R. Horton (DHI) Laps the Stock Market: Here's Why

Read MoreHide Full Article

The most recent trading session ended with D.R. Horton (DHI - Free Report) standing at $158.58, reflecting a +1.6% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.89% gain on the day. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 1.25%.

Heading into today, shares of the homebuilder had gained 8.8% over the past month, outpacing the Construction sector's gain of 7.65% and the S&P 500's gain of 3.56% in that time.

The investment community will be paying close attention to the earnings performance of D.R. Horton in its upcoming release. The company is slated to reveal its earnings on April 18, 2024. The company's earnings per share (EPS) are projected to be $3.09, reflecting a 13.19% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $8.29 billion, up 3.98% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.17 per share and a revenue of $36.64 billion, signifying shifts of +2.53% and +3.32%, respectively, from the last year.

Any recent changes to analyst estimates for D.R. Horton should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

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, the Zacks Consensus EPS estimate has remained steady. At present, D.R. Horton boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, D.R. Horton is currently exchanging hands at a Forward P/E ratio of 11.02. This denotes a premium relative to the industry's average Forward P/E of 9.47.

We can also see that DHI currently has a PEG ratio of 0.89. 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 0.86 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 46, putting it in the top 19% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


See More Zacks Research for These Tickers


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


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

Published in