D.R. Horton (DHI) Stock Sinks As Market Gains: What You Should Know
D.R. Horton (DHI) closed the most recent trading day at $92.36, moving -0.48% from the previous trading session. This change lagged the S&P 500's daily gain of 0.75%.
Prior to today's trading, shares of the homebuilder had lost 0.24% over the past month. This has was narrower than the Construction sector's loss of 1.92% and lagged the S&P 500's gain of 3.52% in that time.
Wall Street will be looking for positivity from DHI as it approaches its next earnings report date. This is expected to be July 22, 2021. The company is expected to report EPS of $2.83, up 64.53% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.18 billion, up 33.17% from the year-ago period.
DHI's full-year Zacks Consensus Estimates are calling for earnings of $10.51 per share and revenue of $27.39 billion. These results would represent year-over-year changes of +63.96% and +34.85%, respectively.
Any recent changes to analyst estimates for DHI should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.46% higher. DHI is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, DHI is currently trading at a Forward P/E ratio of 8.79. For comparison, its industry has an average Forward P/E of 7.2, which means DHI is trading at a premium to the group.
Also, we should mention that DHI has a PEG ratio of 0.98. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Home Builders industry currently had an average PEG ratio of 1.48 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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