In the latest trading session, D.R. Horton (DHI - Free Report) closed at $53.97, marking a +0.9% move from the previous day. This change outpaced the S&P 500's 0.39% loss on the day. Meanwhile, the Dow lost 0.95%, and the Nasdaq, a tech-heavy index, lost 0.83%.
Coming into today, shares of the homebuilder had gained 5.15% in the past month. In that same time, the Construction sector gained 3.77%, while the S&P 500 lost 0.1%.
Wall Street will be looking for positivity from DHI as it approaches its next earnings report date. This is expected to be November 12, 2019. In that report, analysts expect DHI to post earnings of $1.25 per share. This would mark year-over-year growth of 2.46%. Our most recent consensus estimate is calling for quarterly revenue of $4.84 billion, up 7.72% from the year-ago period.
Any recent changes to analyst estimates for DHI should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. DHI is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, DHI is currently trading at a Forward P/E ratio of 11.65. This represents a premium compared to its industry's average Forward P/E of 11.11.
Meanwhile, DHI's PEG ratio is currently 1.06. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DHI's industry had an average PEG ratio of 1.25 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 13, putting it in the top 6% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.