D.R. Horton (DHI) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest trading session, D.R. Horton (DHI) closed at $151.76, marking a -0.34% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.15% for the day. On the other hand, the Dow registered a loss of 0.42%, and the technology-centric Nasdaq increased by 0.09%.
Heading into today, shares of the homebuilder had gained 9.63% over the past month, outpacing the Construction sector's gain of 5.37% and the S&P 500's gain of 3.5% in that time.
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 is expected to report EPS of $2.89, up 4.71% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.61 billion, up 4.89% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.17 per share and revenue of $36.3 billion. These totals would mark changes of +2.53% and +2.38%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for D.R. Horton. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, there's been a 0.2% rise in the Zacks Consensus EPS estimate. D.R. Horton is currently a Zacks Rank #3 (Hold).
With respect to valuation, D.R. Horton is currently being traded at a Forward P/E ratio of 10.75. This denotes a premium relative to the industry's average Forward P/E of 9.69.
One should further note that DHI currently holds a PEG ratio of 0.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 0.88.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 27, which puts it in the top 11% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.
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D.R. Horton, Inc. (DHI) : Free Stock Analysis Report
