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D.R. Horton (DHI) Stock Moves -0.32%: What You Should Know

Zacks Equity Research
·3 min read

In the latest trading session, D.R. Horton (DHI) closed at $68.88, marking a -0.32% move from the previous day. This change was narrower than the S&P 500's 3.53% loss on the day. At the same time, the Dow lost 3.44%, and the tech-heavy Nasdaq lost 3.73%.

Heading into today, shares of the homebuilder had lost 6.65% over the past month, lagging the Construction sector's gain of 1.59% and the S&P 500's gain of 2.89% in that time.

DHI will be looking to display strength as it nears its next earnings release, which is expected to be November 10, 2020. The company is expected to report EPS of $1.76, up 30.37% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.88 billion, up 18.17% from the year-ago period.

Any recent changes to analyst estimates for DHI should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.15% higher. DHI is currently a Zacks Rank #3 (Hold).

Digging into valuation, DHI currently has a Forward P/E ratio of 10.05. This represents a premium compared to its industry's average Forward P/E of 9.91.

Investors should also note that DHI has a PEG ratio of 0.68 right now. 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. The Building Products - Home Builders was holding an average PEG ratio of 0.69 at yesterday's closing price.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 8, which puts it in the top 4% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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Zacks Investment Research