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

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D.R. Horton (DHI - Free Report) closed the most recent trading day at $77.89, moving +0.45% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.96%. Elsewhere, the Dow lost 0.48%, while the tech-heavy Nasdaq lost 2.22%.

Coming into today, shares of the homebuilder had gained 9.89% in the past month. In that same time, the Construction sector gained 0.04%, while the S&P 500 lost 4.04%.

Wall Street will be looking for positivity from DHI as it approaches its next earnings report date. The company is expected to report EPS of $1.73, up 28.15% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.79 billion, up 16.25% from the year-ago period.

Investors should also note any recent changes to analyst estimates for DHI. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant. DHI currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that DHI has a Forward P/E ratio of 11.81 right now. This represents a premium compared to its industry's average Forward P/E of 11.77.

Meanwhile, DHI's PEG ratio is currently 0.86. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DHI's industry had an average PEG ratio of 0.94 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 13, putting it in the top 6% 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.

To follow DHI in the coming trading sessions, be sure to utilize Zacks.com.


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