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

D.R. Horton (DHI) closed at $60.56 in the latest trading session, marking a -1.21% move from the prior day. This change lagged the S&P 500's 0.22% gain on the day. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.22%.

Prior to today's trading, shares of the homebuilder had lost 11.91% over the past month. This has was narrower than the Construction sector's loss of 14.17% and lagged the S&P 500's loss of 10.02% in that time.

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. In that report, analysts expect D.R. Horton to post earnings of $4.54 per share. This would mark year-over-year growth of 48.37%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.07 billion, up 24.45% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $17.39 per share and revenue of $35.33 billion, which would represent changes of +52.41% and +27.22%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for D.R. Horton. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% higher. D.R. Horton is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that D.R. Horton has a Forward P/E ratio of 3.48 right now. This valuation marks a premium compared to its industry's average Forward P/E of 3.

It is also worth noting that DHI currently has a PEG ratio of 0.42. 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. DHI's industry had an average PEG ratio of 0.36 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 92, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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