Has D.R. Horton (DHI) Outpaced Other Construction Stocks This Year?
Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Is D.R. Horton (DHI) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
D.R. Horton is one of 103 individual stocks in the Construction sector. Collectively, these companies sit at #7 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. D.R. Horton is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for DHI's full-year earnings has moved 9.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, DHI has gained about 45.3% so far this year. In comparison, Construction companies have returned an average of 28%. This means that D.R. Horton is outperforming the sector as a whole this year.
Meritage Homes (MTH) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 42.5%.
For Meritage Homes, the consensus EPS estimate for the current year has increased 1.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, D.R. Horton is a member of the Building Products - Home Builders industry, which includes 19 individual companies and currently sits at #71 in the Zacks Industry Rank. On average, this group has gained an average of 28.3% so far this year, meaning that DHI is performing better in terms of year-to-date returns. Meritage Homes is also part of the same industry.
Investors interested in the Construction sector may want to keep a close eye on D.R. Horton and Meritage Homes as they attempt to continue their solid performance.
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