Is D.R. Horton (DHI) Stock Outpacing Its Construction Peers This Year?
For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Is D.R. Horton (DHI) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.
D.R. Horton is one of 101 individual stocks in the Construction sector. Collectively, these companies sit at #1 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. DHI is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for DHI's full-year earnings has moved 6.55% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, DHI has moved about 20.34% on a year-to-date basis. At the same time, Construction stocks have lost an average of 1.06%. As we can see, D.R. Horton is performing better than its sector in the calendar year.
To break things down more, DHI belongs to the Building Products - Home Builders industry, a group that includes 16 individual companies and currently sits at #14 in the Zacks Industry Rank. On average, stocks in this group have gained 9.11% this year, meaning that DHI is performing better in terms of year-to-date returns.
DHI will likely be looking to continue its solid performance, so investors interested in Construction stocks should continue to pay close attention to the company.
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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.