For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Is D.R. Horton (DHI - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.
D.R. Horton is one of 102 individual stocks in the Construction sector. Collectively, these companies sit at #12 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. DHI is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for DHI's full-year earnings has moved 6.41% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, DHI has moved about 0.40% on a year-to-date basis. In comparison, Construction companies have returned an average of -0.63%. As we can see, D.R. Horton is performing better than its sector in the calendar year.
Looking more specifically, DHI belongs to the Building Products - Home Builders industry, which includes 19 individual stocks and currently sits at #179 in the Zacks Industry Rank. Stocks in this group have gained about 0.69% so far this year, so DHI is slightly underperforming its industry this group in terms of year-to-date returns.
Investors in the Construction sector will want to keep a close eye on DHI as it attempts to continue its solid performance.