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D.R. Horton (DHI) Advances While Market Declines: Some Information for Investors

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The latest trading session saw D.R. Horton (DHI - Free Report) ending at $161.82, denoting a +0.26% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 0.14%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq added 0.17%.

The homebuilder's stock has climbed by 11.21% in the past month, exceeding the Construction sector's gain of 10.87% and the S&P 500's gain of 5.34%.

The upcoming earnings release of D.R. Horton will be of great interest to investors. The company's earnings report is expected on April 18, 2024. The company's upcoming EPS is projected at $3.09, signifying a 13.19% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.29 billion, indicating a 3.98% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.17 per share and revenue of $36.64 billion. These totals would mark changes of +2.53% and +3.32%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for D.R. Horton. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. D.R. Horton is currently a Zacks Rank #3 (Hold).

In the context of valuation, D.R. Horton is at present trading with a Forward P/E ratio of 11.39. Its industry sports an average Forward P/E of 9.86, so one might conclude that D.R. Horton is trading at a premium comparatively.

We can also see that DHI currently has a PEG ratio of 0.92. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Building Products - Home Builders was holding an average PEG ratio of 0.95 at yesterday's closing price.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 75, putting it in the top 30% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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