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D.R. Horton (DHI) Exceeds Market Returns: Some Facts to Consider

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D.R. Horton (DHI - Free Report) ended the recent trading session at $147.81, demonstrating a +1.52% change from the preceding day's closing price. This change outpaced the S&P 500's 0.02% gain on the day. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.07%.

Heading into today, shares of the homebuilder had lost 6.91% over the past month, lagging the Construction sector's loss of 0.55% and the S&P 500's gain of 5.12%.

The investment community will be closely monitoring the performance of D.R. Horton in its forthcoming earnings report. The company is scheduled to release its earnings on July 21, 2026. The company is forecasted to report an EPS of $2.98, showcasing a 11.31% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $9.18 billion, down 0.49% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.57 per share and revenue of $33.86 billion, indicating changes of -8.64% and -1.14%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for D.R Horton. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.59% lower. D.R. Horton presently features a Zacks Rank of #3 (Hold).

Investors should also note D.R. Horton's current valuation metrics, including its Forward P/E ratio of 13.77. This signifies a premium in comparison to the average Forward P/E of 13.76 for its industry.

It is also worth noting that DHI currently has a PEG ratio of 2.04. 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 industry currently had an average PEG ratio of 1.73 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 209, finds itself in the bottom 15% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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