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

D.R. Horton (DHI) closed at $147.80 in the latest trading session, marking a +1.59% move from the prior day. This change outpaced the S&P 500's 0.8% gain on the day. At the same time, the Dow added 1.51%, and the tech-heavy Nasdaq lost 0.01%.

Prior to today's trading, shares of the homebuilder had gained 0.02% over the past month. This has lagged the Construction sector's gain of 2.99% and the S&P 500's gain of 4.14% in that time.

Market participants will be closely following the financial results of D.R. Horton in its upcoming release. The company plans to announce its earnings on July 18, 2024. The company's upcoming EPS is projected at $3.80, signifying a 2.56% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $9.69 billion, indicating a 0.34% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $14.26 per share and a revenue of $36.97 billion, demonstrating changes of +3.18% and +4.27%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for D.R. Horton. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% lower. At present, D.R. Horton boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that D.R. Horton has a Forward P/E ratio of 10.2 right now. This denotes a premium relative to the industry's average Forward P/E of 8.83.

We can additionally observe that DHI currently boasts a PEG ratio of 0.72. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 0.79.

The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 16, finds itself in the top 7% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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

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