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Why D.R. Horton (DHI) Dipped More Than Broader Market Today
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D.R. Horton (DHI - Free Report) closed at $149.88 in the latest trading session, marking a -1.38% move from the prior day. This change lagged the S&P 500's daily loss of 0.57%. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, lost 1.64%.
Shares of the homebuilder have appreciated by 16.47% over the course of the past month, outperforming the Construction sector's gain of 10.72% and the S&P 500's gain of 4%.
Analysts and investors alike will be keeping a close eye on the performance of D.R. Horton in its upcoming earnings disclosure. The company's earnings report is set to go public on January 23, 2024. The company's earnings per share (EPS) are projected to be $2.86, reflecting a 3.62% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.61 billion, up 4.89% from the year-ago period.
DHI's full-year Zacks Consensus Estimates are calling for earnings of $14.17 per share and revenue of $36.3 billion. These results would represent year-over-year changes of +2.53% and +2.38%, respectively.
Investors should also note any recent changes to analyst estimates for D.R. Horton. Recent revisions tend to reflect the latest near-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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% higher. D.R. Horton currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, D.R. Horton is holding a Forward P/E ratio of 10.73. This valuation marks a premium compared to its industry's average Forward P/E of 9.88.
We can additionally observe that DHI currently boasts a PEG ratio of 0.88. 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. The Building Products - Home Builders industry had an average PEG ratio of 0.88 as trading concluded yesterday.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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Why D.R. Horton (DHI) Dipped More Than Broader Market Today
D.R. Horton (DHI - Free Report) closed at $149.88 in the latest trading session, marking a -1.38% move from the prior day. This change lagged the S&P 500's daily loss of 0.57%. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, lost 1.64%.
Shares of the homebuilder have appreciated by 16.47% over the course of the past month, outperforming the Construction sector's gain of 10.72% and the S&P 500's gain of 4%.
Analysts and investors alike will be keeping a close eye on the performance of D.R. Horton in its upcoming earnings disclosure. The company's earnings report is set to go public on January 23, 2024. The company's earnings per share (EPS) are projected to be $2.86, reflecting a 3.62% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.61 billion, up 4.89% from the year-ago period.
DHI's full-year Zacks Consensus Estimates are calling for earnings of $14.17 per share and revenue of $36.3 billion. These results would represent year-over-year changes of +2.53% and +2.38%, respectively.
Investors should also note any recent changes to analyst estimates for D.R. Horton. Recent revisions tend to reflect the latest near-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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% higher. D.R. Horton currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, D.R. Horton is holding a Forward P/E ratio of 10.73. This valuation marks a premium compared to its industry's average Forward P/E of 9.88.
We can additionally observe that DHI currently boasts a PEG ratio of 0.88. 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. The Building Products - Home Builders industry had an average PEG ratio of 0.88 as trading concluded yesterday.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.