D.R. Horton (DHI) Gains As Market Dips: What You Should Know
D.R. Horton (DHI) closed the most recent trading day at $83.63, moving +1.15% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.06%. Meanwhile, the Dow lost 0.71%, and the Nasdaq, a tech-heavy index, added 0.76%.
Heading into today, shares of the homebuilder had gained 5.67% over the past month, outpacing the Construction sector's gain of 5.39% and the S&P 500's gain of 0.17% in that time.
Investors will be hoping for strength from DHI as it approaches its next earnings release, which is expected to be April 22, 2021. In that report, analysts expect DHI to post earnings of $2.21 per share. This would mark year-over-year growth of 70%. Our most recent consensus estimate is calling for quarterly revenue of $6.19 billion, up 37.47% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.16 per share and revenue of $26.13 billion. These totals would mark changes of +42.9% and +28.63%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for DHI. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.63% higher. DHI is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note DHI's current valuation metrics, including its Forward P/E ratio of 9.03. For comparison, its industry has an average Forward P/E of 8.77, which means DHI is trading at a premium to the group.
Also, we should mention that DHI has a PEG ratio of 0.67. 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. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 0.72 based on yesterday's closing prices.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 33, putting it in the top 13% 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.
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