D.R. Horton (DHI) Gains But Lags Market: What You Should Know
D.R. Horton (DHI) closed the most recent trading day at $76.66, moving +0.63% from the previous trading session. This move lagged the S&P 500's daily gain of 0.81%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 0.61%.
Prior to today's trading, shares of the homebuilder had lost 10.8% over the past month. This has lagged the Construction sector's loss of 0.59% and the S&P 500's gain of 5.64% in that time.
Investors will be hoping for strength from D.R. Horton as it approaches its next earnings release, which is expected to be April 26, 2022. On that day, D.R. Horton is projected to report earnings of $3.38 per share, which would represent year-over-year growth of 33.6%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.62 billion, up 18.17% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.88 per share and revenue of $35.29 billion. These totals would mark changes of +39.18% and +27.06%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for D.R. Horton. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.51% higher. D.R. Horton is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, D.R. Horton is holding a Forward P/E ratio of 4.8. This valuation marks a premium compared to its industry's average Forward P/E of 4.12.
Meanwhile, DHI's PEG ratio is currently 0.46. 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 was holding an average PEG ratio of 0.38 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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