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D.R. Horton (DHI) Falls More Steeply Than Broader Market: What Investors Need to Know

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In the latest close session, D.R. Horton (DHI - Free Report) was down 2.31% at $144.50. This change lagged the S&P 500's 0.74% loss on the day. Meanwhile, the Dow experienced a drop of 1.21%, and the technology-dominated Nasdaq saw a decrease of 0.89%.

Coming into today, shares of the homebuilder had gained 0.98% in the past month. In that same time, the Construction sector lost 1.64%, while the S&P 500 gained 5.39%.

The upcoming earnings release of D.R. Horton will be of great interest to investors. The company's earnings report is expected on July 21, 2026. The company's upcoming EPS is projected at $2.98, signifying a 11.31% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $9.18 billion, indicating a 0.49% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $10.57 per share and revenue of $33.86 billion, which would represent changes of -8.64% and -1.14%, respectively, from the prior year.

Any recent changes to analyst estimates for D.R. Horton should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. D.R. Horton is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, D.R. Horton is currently trading at a Forward P/E ratio of 13.99. This represents no noticeable deviation compared to its industry average Forward P/E of 13.99.

One should further note that DHI currently holds a PEG ratio of 2.07. 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 had an average PEG ratio of 1.85 as trading concluded yesterday.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 212, which puts it in the bottom 14% of all 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.

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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