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D.R. Horton (DHI) Gains As Market Dips: What You Should Know

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D.R. Horton (DHI) closed the most recent trading day at $73.45, moving +0.62% from the previous trading session. This move outpaced the S&P 500's daily loss of 2.38%. Elsewhere, the Dow lost 1.94%, while the tech-heavy Nasdaq lost 0.6%.

Prior to today's trading, shares of the homebuilder had gained 12.55% over the past month. This has outpaced the Construction sector's gain of 1.22% and the S&P 500's loss of 0.07% in that time.

Wall Street will be looking for positivity from D.R. Horton as it approaches its next earnings report date. On that day, D.R. Horton is projected to report earnings of $4.54 per share, which would represent year-over-year growth of 48.37%. Our most recent consensus estimate is calling for quarterly revenue of $9.07 billion, up 24.45% from the year-ago period.

DHI's full-year Zacks Consensus Estimates are calling for earnings of $17.37 per share and revenue of $35.41 billion. These results would represent year-over-year changes of +52.23% and +27.48%, respectively.

Any recent changes to analyst estimates for D.R. Horton should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. D.R. Horton is currently a Zacks Rank #3 (Hold).

Digging into valuation, D.R. Horton currently has a Forward P/E ratio of 4.2. For comparison, its industry has an average Forward P/E of 3.86, which means D.R. Horton is trading at a premium to the group.

Also, we should mention that DHI has a PEG ratio of 0.5. 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. The Building Products - Home Builders industry currently had an average PEG ratio of 0.43 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 55, putting it in the top 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow DHI in the coming trading sessions, be sure to utilize Zacks.com.


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