D.R. Horton (DHI) closed at $87.77 in the latest trading session, marking a -1.05% move from the prior day. This move lagged the S&P 500's daily loss of 0.51%.

Coming into today, shares of the homebuilder had gained 4.24% in the past month. In that same time, the Construction sector gained 2.22%, while the S&P 500 gained 3.08%.

Wall Street will be looking for positivity from DHI as it approaches its next earnings report date. This is expected to be November 9, 2021. On that day, DHI is projected to report earnings of $3.40 per share, which would represent year-over-year growth of 51.79%. Meanwhile, our latest consensus estimate is calling for revenue of $7.79 billion, up 21.77% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for DHI. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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, 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. The Zacks Consensus EPS estimate has moved 2.65% higher within the past month. DHI is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that DHI has a Forward P/E ratio of 6.68 right now. Its industry sports an average Forward P/E of 6.83, so we one might conclude that DHI is trading at a discount comparatively.

Investors should also note that DHI has a PEG ratio of 0.74 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 industry currently had an average PEG ratio of 0.74 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow DHI in the coming trading sessions, be sure to utilize Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
D.R. Horton, Inc. (DHI) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.