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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 $142.09 in the latest trading session, marking a +1.14% move from the prior day. This move outpaced the S&P 500's daily gain of 1.01%. On the other hand, the Dow registered a gain of 0.83%, and the technology-centric Nasdaq increased by 1.22%.

Prior to today's trading, shares of the homebuilder had lost 16.27% lagged the Construction sector's loss of 12.24% and the S&P 500's loss of 2.86%.

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 21, 2026. The company is forecasted to report an EPS of $2.18, showcasing a 15.5% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $7.7 billion, indicating a 0.47% decline compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.52 per share and revenue of $34.01 billion. These totals would mark changes of -9.08% and -0.7%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for D.R Horton. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.13% downward. D.R. Horton is currently a Zacks Rank #5 (Strong Sell).

Looking at valuation, D.R. Horton is presently trading at a Forward P/E ratio of 13.36. Its industry sports an average Forward P/E of 12.43, so one might conclude that D.R. Horton is trading at a premium comparatively.

Meanwhile, DHI's PEG ratio is currently 2.17. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 1.38.

The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 232, placing it within the bottom 6% of over 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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