In the latest trading session, D.R. Horton (DHI – Free Report) closed at $128.84, marking a -1.75% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.08% for the day. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq gained 0.52%.
Heading into today, shares of the homebuilder had gained 1.9% over the past month, outpacing the Construction sector’s loss of 4.98% and the S&P 500’s loss of 7.33% in that time.
The investment community will be closely monitoring the performance of D.R. Horton in its forthcoming earnings report. The company is scheduled to release its earnings on April 17, 2025. The company’s upcoming EPS is projected at $2.69, signifying a 23.58% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.14 billion, down 10.62% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.98 per share and revenue of $36.71 billion, which would represent changes of -9.48% and -0.24%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for D.R. Horton. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there’s been no change in the Zacks Consensus EPS estimate. As of now, D.R. Horton holds a Zacks Rank of #4 (Sell).
In terms of valuation, D.R. Horton is presently being traded at a Forward P/E ratio of 10.1. This expresses a premium compared to the average Forward P/E of 8.53 of its industry.
Meanwhile, DHI’s PEG ratio is currently 0.56. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. By the end of yesterday’s trading, the Building Products – Home Builders industry had an average PEG ratio of 0.98.
The Building Products – Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 231, putting it in the bottom 8% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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