D.R. Horton (DHI) Outperforms Broader Market: What You Need to Know
In the latest trading session, D.R. Horton (DHI) closed at $164.55, marking a +1.54% move from the previous day. This move outpaced the S&P 500's daily gain of 0.11%. Meanwhile, the Dow experienced a rise of 0.12%, and the technology-dominated Nasdaq saw a decrease of 0.12%.
Shares of the homebuilder have appreciated by 11.01% over the course of the past month, outperforming the Construction sector's gain of 7.71% and the S&P 500's gain of 3.55%.
Investors will be eagerly watching for the performance of D.R. Horton in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 18, 2024. In that report, analysts expect D.R. Horton to post earnings of $3.09 per share. This would mark year-over-year growth of 13.19%. Meanwhile, the latest consensus estimate predicts the revenue to be $8.29 billion, indicating a 3.98% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.17 per share and revenue of $36.64 billion. These totals would mark changes of +2.53% and +3.32%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for D.R. Horton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, D.R. Horton holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that D.R. Horton has a Forward P/E ratio of 11.44 right now. For comparison, its industry has an average Forward P/E of 10.03, which means D.R. Horton is trading at a premium to the group.
Also, we should mention that DHI has a PEG ratio of 0.92. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. DHI's industry had an average PEG ratio of 0.93 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 41, positioning it in the top 17% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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D.R. Horton, Inc. (DHI) : Free Stock Analysis Report
