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D.R. Horton (DHI) Registers a Bigger Fall Than the Market: Important Facts to Note
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The latest trading session saw D.R. Horton (DHI - Free Report) ending at $152.47, denoting a -0.33% adjustment from its last day's close. This move lagged the S&P 500's daily loss of 0.12%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 0.41%.
Heading into today, shares of the homebuilder had gained 4.14% over the past month, lagging the Construction sector's gain of 9.47% and the S&P 500's gain of 4.83% in that time.
The upcoming earnings release of D.R. Horton will be of great interest to investors. The company is predicted to post an EPS of $3.09, indicating a 13.19% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $8.29 billion, up 3.98% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $14.19 per share and revenue of $36.64 billion, which would represent changes of +2.68% and +3.33%, respectively, from the prior year.
Investors might also notice 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.1% lower. D.R. Horton currently has a Zacks Rank of #3 (Hold).
In terms of valuation, D.R. Horton is presently being traded at a Forward P/E ratio of 10.78. For comparison, its industry has an average Forward P/E of 9.45, which means D.R. Horton is trading at a premium to the group.
We can additionally observe that DHI currently boasts a PEG ratio of 0.87. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 0.88.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 15, placing it within the top 6% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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D.R. Horton (DHI) Registers a Bigger Fall Than the Market: Important Facts to Note
The latest trading session saw D.R. Horton (DHI - Free Report) ending at $152.47, denoting a -0.33% adjustment from its last day's close. This move lagged the S&P 500's daily loss of 0.12%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 0.41%.
Heading into today, shares of the homebuilder had gained 4.14% over the past month, lagging the Construction sector's gain of 9.47% and the S&P 500's gain of 4.83% in that time.
The upcoming earnings release of D.R. Horton will be of great interest to investors. The company is predicted to post an EPS of $3.09, indicating a 13.19% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $8.29 billion, up 3.98% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $14.19 per share and revenue of $36.64 billion, which would represent changes of +2.68% and +3.33%, respectively, from the prior year.
Investors might also notice 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.1% lower. D.R. Horton currently has a Zacks Rank of #3 (Hold).
In terms of valuation, D.R. Horton is presently being traded at a Forward P/E ratio of 10.78. For comparison, its industry has an average Forward P/E of 9.45, which means D.R. Horton is trading at a premium to the group.
We can additionally observe that DHI currently boasts a PEG ratio of 0.87. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 0.88.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 15, placing it within the top 6% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.