D.R. Horton (DHI) Gains But Lags Market: What You Should Know

·3 min read

D.R. Horton (DHI) closed the most recent trading day at $101.71, moving +0.05% from the previous trading session. This move lagged the S&P 500's daily gain of 0.07%.

On that day, DHI is projected to report earnings of $2.50 per share, which would represent year-over-year growth of 45.35%. Meanwhile, our latest consensus estimate is calling for revenue of $7.11 billion, up 31.98% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.68 per share and revenue of $27.22 billion, which would represent changes of +51.01% and +34.02%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for DHI. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 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. The Zacks Consensus EPS estimate has moved 5.65% 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 10.51 right now. This valuation marks a premium compared to its industry's average Forward P/E of 8.73.

Investors should also note that DHI has a PEG ratio of 0.78 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. The Building Products - Home Builders was holding an average PEG ratio of 0.74 at yesterday's closing price.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 23, putting it in the top 10% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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