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D.R. Horton (DHI) Registers a Bigger Fall Than the Market: Important Facts to Note

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D.R. Horton (DHI - Free Report) ended the recent trading session at $152.48, demonstrating a -2.46% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 1.22%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 1.35%.

Prior to today's trading, shares of the homebuilder had gained 16.04% outpaced the Construction sector's gain of 5.36% and the S&P 500's gain of 1.56%.

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. It is anticipated that the company will report an EPS of $2.98, marking a 11.31% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $9.18 billion, down 0.49% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.57 per share and a revenue of $33.86 billion, indicating changes of -8.64% and -1.14%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for D.R Horton. Such recent modifications usually signify the changing landscape of near-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. Within the past 30 days, our consensus EPS projection remained stagnant. D.R. Horton presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, D.R. Horton is holding a Forward P/E ratio of 14.79. This signifies a discount in comparison to the average Forward P/E of 14.83 for its industry.

Also, we should mention that DHI has a PEG ratio of 2.19. 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 average PEG ratio for the Building Products - Home Builders industry stood at 1.95 at the close of the market yesterday.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 226, putting it in the bottom 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow DHI in the coming trading sessions, be sure to utilize Zacks.com.

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