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

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D.R. Horton (DHI - Free Report) closed at $160.73 in the latest trading session, marking a -2.59% move from the prior day. This change lagged the S&P 500's 0.11% gain on the day. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq added 0.22%.

Coming into today, shares of the homebuilder had gained 13.58% in the past month. In that same time, the Construction sector gained 0.75%, while the S&P 500 gained 0.08%.

Analysts and investors alike will be keeping a close eye on the performance of D.R. Horton in its upcoming earnings disclosure. The company is expected to report EPS of $1.97, down 24.52% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $6.71 billion, indicating a 11.81% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $11.41 per share and a revenue of $34.33 billion, demonstrating changes of -1.38% and +0.24%, respectively, from the preceding year.

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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.98% downward. D.R. Horton currently has a Zacks Rank of #3 (Hold).

Digging into valuation, D.R. Horton currently has a Forward P/E ratio of 14.46. This valuation marks a premium compared to its industry average Forward P/E of 12.22.

We can also see that DHI currently has a PEG ratio of 1.97. 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 was holding an average PEG ratio of 1.97 at yesterday's closing price.

The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 212, positioning it in the bottom 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.

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


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