D.R. Horton (DHI) closed at $107.47 in the latest trading session, marking a -1.33% move from the prior day. This move lagged the S&P 500's daily loss of 0.27%. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq added 0.14%.
Prior to today's trading, shares of the homebuilder had lost 8.49% over the past month. This has lagged the Construction sector's loss of 4.12% and the S&P 500's loss of 2.86% in that time.
Wall Street will be looking for positivity from D.R. Horton as it approaches its next earnings report date. This is expected to be November 7, 2023. In that report, analysts expect D.R. Horton to post earnings of $3.97 per share. This would mark a year-over-year decline of 14.99%. Our most recent consensus estimate is calling for quarterly revenue of $10.06 billion, up 4.32% from the year-ago period.
DHI's full-year Zacks Consensus Estimates are calling for earnings of $13.27 per share and revenue of $34.9 billion. These results would represent year-over-year changes of -19.62% and +4.24%, respectively.
Investors should also note any recent changes to analyst estimates for D.R. Horton. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. D.R. Horton is currently a Zacks Rank #3 (Hold).
Investors should also note D.R. Horton's current valuation metrics, including its Forward P/E ratio of 8.21. This represents a no noticeable deviation compared to its industry's average Forward P/E of 8.21.
It is also worth noting that DHI currently has a PEG ratio of 0.44. 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 0.69 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 17, which puts it in the top 7% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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