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D.R. Horton (DHI) Stock Moves -0.21%: What You Should Know

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D.R. Horton (DHI - Free Report) closed the most recent trading day at $118.65, moving -0.21% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.67%. On the other hand, the Dow registered a loss of 0.61%, and the technology-centric Nasdaq decreased by 1%.

Prior to today's trading, shares of the homebuilder had lost 5.66% over the past month. This has lagged the Construction sector's gain of 11.64% and the S&P 500's gain of 10.65% in that time.

Analysts and investors alike will be keeping a close eye on the performance of D.R. Horton in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.92, reflecting a 28.78% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $8.82 billion, indicating a 11.48% downward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.41 per share and a revenue of $34.1 billion, indicating changes of -20.43% and -7.34%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for D.R. Horton. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 2.12% lower within the past month. Currently, D.R. Horton is carrying a Zacks Rank of #4 (Sell).

In the context of valuation, D.R. Horton is at present trading with a Forward P/E ratio of 10.42. For comparison, its industry has an average Forward P/E of 9.1, which means D.R. Horton is trading at a premium to the group.

Also, we should mention that DHI has a PEG ratio of 3.74. 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 average PEG ratio for the Building Products - Home Builders industry stood at 1.72 at the close of the market yesterday.

The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 231, this industry ranks in the bottom 7% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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