Yahoo Finance D.R. Horton (DHI) Dips More Than Broader Markets: What You Should Know
In the latest trading session, D.R. Horton (DHI) closed at $74.81, marking a -1.62% move from the previous day. This change lagged the S&P 500's daily loss of 1.34%. Meanwhile, the Dow lost 1.11%, and the Nasdaq, a tech-heavy index, lost 2.11%.
Prior to today's trading, shares of the homebuilder had lost 0.67% over the past month. This has lagged the Construction sector's gain of 2.62% and the S&P 500's loss of 0.11% in that time.
DHI will be looking to display strength as it nears its next earnings release. In that report, analysts expect DHI to post earnings of $2.18 per share. This would mark year-over-year growth of 67.69%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.19 billion, up 37.51% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.04 per share and revenue of $26.05 billion, which would represent changes of +41.03% and +28.26%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for DHI. Recent revisions tend to reflect the latest near-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.55% higher within the past month. DHI is currently a Zacks Rank #2 (Buy).
Digging into valuation, DHI currently has a Forward P/E ratio of 8.41. Its industry sports an average Forward P/E of 8.38, so we one might conclude that DHI is trading at a premium comparatively.
It is also worth noting that DHI currently has a PEG ratio of 0.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 0.72 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 34, which puts it in the top 14% 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.
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.
