D.R. Horton (DHI - Free Report) closed the most recent trading day at $54.76, moving -0.16% from the previous trading session. This change was narrower than the S&P 500's 0.66% loss on the day. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 0.55%.
Coming into today, shares of the homebuilder had gained 7.23% in the past month. In that same time, the Construction sector lost 1.65%, while the S&P 500 gained 1.77%.
Investors will be hoping for strength from DHI as it approaches its next earnings release. The company is expected to report EPS of $0.92, up 21.05% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.78 billion, up 7.96% from the prior-year quarter.
DHI's full-year Zacks Consensus Estimates are calling for earnings of $4.88 per share and revenue of $18.83 billion. These results would represent year-over-year changes of +13.75% and +7.88%, respectively.
Investors might also notice recent changes to analyst estimates for DHI. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team 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.
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 has moved 6.2% higher within the past month. DHI currently has a Zacks Rank of #2 (Buy).
Investors should also note DHI's current valuation metrics, including its Forward P/E ratio of 11.25. For comparison, its industry has an average Forward P/E of 9.81, which means DHI is trading at a premium to the group.
Also, we should mention that DHI has a PEG ratio of 1.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Home Builders industry currently had an average PEG ratio of 1.08 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 44, putting it in the top 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.