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D.R. Horton (DHI) Surpasses Market Returns: Some Facts Worth Knowing

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D.R. Horton (DHI - Free Report) closed at $167.20 in the latest trading session, marking a +1.33% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.59% for the day. On the other hand, the Dow registered a gain of 0.65%, and the technology-centric Nasdaq increased by 0.44%.

Heading into today, shares of the homebuilder had lost 2.31% over the past month, outpacing the Construction sector's loss of 2.49% and lagging the S&P 500's gain of 2.72%.

Market participants will be closely following the financial results of D.R. Horton in its upcoming release. The company plans to announce its earnings on October 28, 2025. The company is forecasted to report an EPS of $3.29, showcasing a 16.07% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $9.46 billion, indicating a 5.44% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $11.79 per share and revenue of $34.02 billion, which would represent changes of -17.78% and -7.55%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for D.R Horton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, D.R. Horton holds a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that D.R. Horton has a Forward P/E ratio of 13.99 right now. This represents a premium compared to its industry average Forward P/E of 11.54.

It's also important to note that DHI currently trades at a PEG ratio of 3.5. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 2.55 based on yesterday's closing prices.

The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 233, this industry ranks in the bottom 6% of all industries, numbering over 250.

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.

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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