D.R. Horton (DHI) Outpaces Stock Market Gains: What You Should Know
In the latest market close, D.R. Horton (DHI) reached $154.52, with a +1.82% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.57%. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, added 0.75%.
The the stock of homebuilder has risen by 8.56% in the past month, leading the Construction sector's gain of 4.97% and the S&P 500's gain of 3.4%.
The investment community will be closely monitoring the performance of D.R. Horton in its forthcoming earnings report. The company is scheduled to release its earnings on January 23, 2024. The company's upcoming EPS is projected at $2.89, signifying a 4.71% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.62 billion, indicating a 5.02% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.15 per share and a revenue of $36.47 billion, signifying shifts of +2.39% and +2.84%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for D.R. Horton. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.43% higher. At present, D.R. Horton boasts a Zacks Rank of #3 (Hold).
Looking at valuation, D.R. Horton is presently trading at a Forward P/E ratio of 10.73. This valuation marks a premium compared to its industry's average Forward P/E of 9.55.
Also, we should mention that DHI has a PEG ratio of 0.88. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 0.88 based on yesterday's closing prices.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 23, which puts it in the top 10% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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
