Yahoo Finance D.R. Horton (DHI) Outpaces Stock Market Gains: What You Should Know
D.R. Horton (DHI) closed at $88.73 in the latest trading session, marking a +1.01% move from the prior day. This change outpaced the S&P 500's 0.2% gain on the day.
Heading into today, shares of the homebuilder had lost 7.51% over the past month, lagging the Construction sector's loss of 7.02% and the S&P 500's gain of 1.06% in that time.
Wall Street will be looking for positivity from DHI as it approaches its next earnings report date. 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.
Investors should also note any recent changes to analyst estimates for DHI. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 1.09% higher within the past month. DHI is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, DHI is holding a Forward P/E ratio of 8.36. This represents a premium compared to its industry's average Forward P/E of 7.61.
Investors should also note that DHI has a PEG ratio of 0.93 right now. 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. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 1.61 based on yesterday's closing prices.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 9, 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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