D.R. Horton (DHI) Laps the Stock Market: Here's Why

The most recent trading session ended with D.R. Horton (DHI) standing at $158.58, reflecting a +1.6% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.89% gain on the day. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 1.25%.

Heading into today, shares of the homebuilder had gained 8.8% over the past month, outpacing the Construction sector's gain of 7.65% and the S&P 500's gain of 3.56% in that time.

The investment community will be paying close attention to the earnings performance of D.R. Horton in its upcoming release. The company is slated to reveal its earnings on April 18, 2024. The company's earnings per share (EPS) are projected to be $3.09, reflecting a 13.19% increase from the same 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 annual period, the Zacks Consensus Estimates anticipate earnings of $14.17 per share and a revenue of $36.64 billion, signifying shifts of +2.53% and +3.32%, respectively, from the last year.

Any recent changes to analyst estimates for D.R. Horton should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, D.R. Horton boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, D.R. Horton is currently exchanging hands at a Forward P/E ratio of 11.02. This denotes a premium relative to the industry's average Forward P/E of 9.47.

We can also see that DHI currently has a PEG ratio of 0.89. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Home Builders industry currently had an average PEG ratio of 0.86 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 46, putting it in the top 19% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

D.R. Horton, Inc. (DHI) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.