In the latest trading session, D.R. Horton (DHI - Free Report) closed at $50.71, marking a -0.86% move from the previous day. This change lagged the S&P 500's daily loss of 0.12%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.02%.
Coming into today, shares of the homebuilder had lost 2.25% in the past month. In that same time, the Construction sector gained 4.56%, while the S&P 500 gained 4.42%.
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. On that day, DHI is projected to report earnings of $1.25 per share, which would represent year-over-year growth of 2.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.85 billion, up 7.79% from the year-ago period.
Any recent changes to analyst estimates for DHI should also be noted by investors. Recent revisions tend to reflect the latest 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. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. DHI currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, DHI is currently trading at a Forward P/E ratio of 11.14. This represents a premium compared to its industry's average Forward P/E of 10.66.
We can also see that DHI currently has a PEG ratio of 1.01. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DHI's industry had an average PEG ratio of 1.17 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 7, which puts it in the top 3% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.