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D.R. Horton (DHI) Gains As Market Dips: What You Should Know

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D.R. Horton (DHI) closed at $67.97 in the latest trading session, marking a +0.41% move from the prior day. This move outpaced the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 0.11%.

Coming into today, shares of the homebuilder had lost 9.48% in the past month. In that same time, the Construction sector lost 5.7%, while the S&P 500 lost 0.62%.

Investors will be hoping for strength from D.R. Horton as it approaches its next earnings release, which is expected to be July 21, 2022. The company is expected to report EPS of $4.54, up 48.37% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.07 billion, up 24.45% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.39 per share and revenue of $35.33 billion. These totals would mark changes of +52.41% and +27.22%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for D.R. Horton. Recent revisions tend to reflect the latest 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. 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.

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 0.09% higher. D.R. Horton is currently a Zacks Rank #3 (Hold).

Investors should also note D.R. Horton's current valuation metrics, including its Forward P/E ratio of 3.89. This valuation marks a premium compared to its industry's average Forward P/E of 3.27.

It is also worth noting that DHI currently has a PEG ratio of 0.47. 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. The Building Products - Home Builders was holding an average PEG ratio of 0.63 at yesterday's closing price.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 25% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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