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D.R. Horton (DHI) Stock Sinks As Market Gains: Here's Why

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D.R. Horton (DHI - Free Report) closed at $135.31 in the latest trading session, marking a -2.93% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.41%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, added 1.11%.

Prior to today's trading, shares of the homebuilder had gained 0.99% outpaced the Construction sector's loss of 2.82% and lagged the S&P 500's gain of 1.46%.

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 October 29, 2026. The company is predicted to post an EPS of $3.03, indicating a 0.33% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $9.04 billion, reflecting a 6.59% fall from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.43 per share and revenue of $32.73 billion. These totals would mark changes of -9.85% and -4.43%, respectively, from last 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.22% decrease. D.R. Horton is holding a Zacks Rank of #4 (Sell) right now.

Looking at valuation, D.R. Horton is presently trading at a Forward P/E ratio of 12.24. For comparison, its industry has an average Forward P/E of 12.43, which means D.R. Horton is trading at a discount to the group.

We can also see that DHI currently has a PEG ratio of 2.16. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Building Products - Home Builders industry held an average PEG ratio of 2.16.

The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 234, positioning it in the bottom 5% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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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