D.R. Horton (DHI) closed the most recent trading day at $51.56, moving -0.5% from the previous trading session. This change lagged the S&P 500's 0.08% loss on the day. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq lost 0.59%.
Heading into today, shares of the homebuilder had lost 1.69% over the past month, lagging the Construction sector's gain of 5.26% and the S&P 500's gain of 2.7% in that time.
Wall Street will be looking for positivity from DHI as it approaches its next earnings report date. This is expected to be November 12, 2019. In that report, analysts expect DHI to post earnings of $1.25 per share. This would mark year-over-year growth of 2.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.85 billion, up 7.79% from the year-ago period.
Investors might also notice recent changes to analyst estimates for DHI. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, DHI is currently trading at a Forward P/E ratio of 11.29. This valuation marks a premium compared to its industry's average Forward P/E of 10.97.
Also, we should mention that DHI has a PEG ratio of 1.03. 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 1.22 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 7, which puts it in the top 3% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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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