D.R. Horton (DHI) Outperforms Broader Market: What You Need to Know
D.R. Horton (DHI) closed at $151.75 in the latest trading session, marking a +0.69% move from the prior day. This move outpaced the S&P 500's daily gain of 0.14%. On the other hand, the Dow registered a gain of 0.3%, and the technology-centric Nasdaq increased by 0.16%.
Prior to today's trading, shares of the homebuilder had gained 19.65% over the past month. This has outpaced the Construction sector's gain of 14.08% and the S&P 500's gain of 4.89% in that time.
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 January 23, 2024. In that report, analysts expect D.R. Horton to post earnings of $2.86 per share. This would mark year-over-year growth of 3.62%. Simultaneously, our latest consensus estimate expects the revenue to be $7.61 billion, showing a 4.89% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $14.17 per share and revenue of $36.3 billion, which would represent changes of +2.53% and +2.38%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for D.R. Horton. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.18% lower. D.R. Horton presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, D.R. Horton is currently exchanging hands at a Forward P/E ratio of 10.64. This represents a premium compared to its industry's average Forward P/E of 10.31.
Meanwhile, DHI's PEG ratio is currently 0.87. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Home Builders industry had an average PEG ratio of 0.87 as trading concluded yesterday.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 69, positioning it in the top 28% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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
