In the latest trading session, DR Horton (DHI) closed at $127.26, marking a +1.03% move from the previous day. The stock’s change was more than the S&P 500’s daily loss of 0.1%. At the same time, the Dow added 0.04%, and the technical Nasdaq lost 0.16%.
The homebuilder’s stock has risen 20.65% in the past month, leading the Construction sector’s gain of 15.43% and the S&P 500’s gain of 10.77%.
DR Horton’s upcoming earnings release will be of great interest to investors. The company’s earnings per share (EPS) is expected to be $2.83, reflecting a 2.54% increase from the same quarter last year. Meanwhile, our current consensus estimate predicts that the revenue will be $7.61 billion, indicating a growth of 4.84% compared to the corresponding quarter of the previous year.
For the full fiscal year, the Zacks Consensus Estimates predict earnings of $14.33 per share and revenue of $36.44 billion, indicating changes of +3.69% and +2.76%, respectively, from the previous year .
Additionally, investors should keep an eye on some recent revisions to analyst forecasts for DR Horton. Recent revisions tend to reflect the latest near-term business trends. Consequently, positive revisions in ratings convey analysts’ confidence in the company’s business performance and profit potential.
Our research suggests that these changes in valuations have a direct relationship with upcoming stock price performance. To use this, we created the Zacks Rank, a proprietary model that integrates these rating changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of externally verified outperformance, with #1 ranked stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate moved 2.92% higher in the past month. DR Horton currently has a Zacks Rank of number 3 (Hold).
In terms of valuation, DR Horton currently trades with a Forward P/E ratio of 8.79. This indicates a premium relative to the industry’s average Forward P/E of 8.56.
Meanwhile, DHI’s PEG ratio is currently 0.72. The PEG ratio is similar to the commonly used P/E ratio, but this parameter also includes the company’s expected earnings growth. As of the close of trading yesterday, the Buildings – Home Builders industry held an average PEG ratio of 0.71.
The Building Products – Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 144, this industry ranks in the bottom 43% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vitality of our specific industry groups by computing the average Zacks Rank of the individual stocks included in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to use Zacks.com to stay up-to-date with all of these stock-changing metrics, among others, in the upcoming trading sessions.
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DR Horton, Inc. (DHI): Free Analysis Report
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