U.S. Markets open in 3 hrs 27 mins
  • S&P Futures

    3,444.50
    +21.75 (+0.64%)
     
  • Dow Futures

    28,254.00
    +154.00 (+0.55%)
     
  • Nasdaq Futures

    11,725.00
    +74.75 (+0.64%)
     
  • Russell 2000 Futures

    1,624.30
    +13.00 (+0.81%)
     
  • Crude Oil

    40.94
    +0.11 (+0.27%)
     
  • Gold

    1,909.30
    -2.40 (-0.13%)
     
  • Silver

    24.76
    +0.06 (+0.25%)
     
  • EUR/USD

    1.1809
    +0.0036 (+0.3070%)
     
  • 10-Yr Bond

    0.7610
    0.0000 (0.00%)
     
  • Vix

    28.46
    +1.05 (+3.83%)
     
  • GBP/USD

    1.2959
    +0.0019 (+0.1451%)
     
  • USD/JPY

    105.5470
    +0.1170 (+0.1110%)
     
  • BTC-USD

    11,784.34
    +727.33 (+6.58%)
     
  • CMC Crypto 200

    238.98
    +5.31 (+2.27%)
     
  • FTSE 100

    5,894.60
    +9.95 (+0.17%)
     
  • Nikkei 225

    23,567.04
    -104.09 (-0.44%)
     

D.R. Horton (DHI) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
·3 mins read

D.R. Horton (DHI) closed the most recent trading day at $72, moving +1.17% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.37%.

Prior to today's trading, shares of the homebuilder had lost 3.92% over the past month. This has was narrower than the Construction sector's loss of 4.91% and the S&P 500's loss of 5.02% in that time.

Wall Street will be looking for positivity from DHI as it approaches its next earnings report date. The company is expected to report EPS of $1.73, up 28.15% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.79 billion, up 16.25% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.90 per share and revenue of $19.67 billion. These totals would mark changes of +37.53% and +12.65%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for DHI. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. DHI is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, DHI currently has a Forward P/E ratio of 12.06. This valuation marks a premium compared to its industry's average Forward P/E of 10.66.

It is also worth noting that DHI currently has a PEG ratio of 0.87. 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. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 1.02 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 6, putting it in the top 3% 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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
D.R. Horton, Inc. (DHI) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.