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Why D.R. Horton (DHI) is a Top Value Stock for the Long-Term

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

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D.R. Horton (DHI)

D.R. Horton, Inc., based in Texas, is one of the leading national homebuilders, primarily engaged in the construction and sale of single-family houses both in the entry-level and move-up markets. D.R. Horton’s operations are spread across 118 markets in 33 states in the East, Midwest, Southeast, South Central, Southwest and West regions of the United States. Its houses are sold under the brand names D.R. Horton - America’s Builder, Emerald Homes, Express Homes and Freedom Homes.

DHI sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Building Products - Home Builders industry's P/E of 8.7X, shares of D.R. Horton are trading at a forward P/E of 10X. DHI also has a PEG Ratio of 0.8, a Price/Cash Flow ratio of 9.9X, and a Price/Sales ratio of 1.3X.

Many value investors pay close attention to a company's earnings as well. For DHI, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.05 to $14.19 per share for 2024. Per share DHI boasts an average earnings surprise of 22.9%.

Investors should take the time to consider DHI for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

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D.R. Horton, Inc. (DHI) : Free Stock Analysis Report

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Zacks Investment Research