Back to top

Image: Bigstock

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

Read MoreHide Full Article

D.R. Horton (DHI - Free Report) closed at $71.27 in the latest trading session, marking a -1.48% move from the prior day. This change lagged the S&P 500's 0.88% gain on the day. At the same time, the Dow added 0.83%, and the tech-heavy Nasdaq gained 0.7%.

Prior to today's trading, shares of the homebuilder had lost 0.78% over the past month. This has lagged the Construction sector's gain of 3.85% and the S&P 500's gain of 9.12% in that time.

Wall Street will be looking for positivity from DHI as it approaches its next earnings report date. On that day, DHI is projected to report earnings of $1.65 per share, which would represent year-over-year growth of 66.67%. Our most recent consensus estimate is calling for quarterly revenue of $5.53 billion, up 37.53% from the year-ago period.

DHI's full-year Zacks Consensus Estimates are calling for earnings of $7.52 per share and revenue of $25.29 billion. These results would represent year-over-year changes of +17.32% and +24.53%, respectively.

Any recent changes to analyst estimates for DHI should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 9.34% higher. DHI is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, DHI currently has a Forward P/E ratio of 9.62. This valuation marks a premium compared to its industry's average Forward P/E of 9.58.

Investors should also note that DHI has a PEG ratio of 0.77 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 0.68 based on yesterday's closing prices.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 8, which puts it in the top 4% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


D.R. Horton, Inc. (DHI) - free report >>

Published in