D.R. Horton (DHI) closed at $131.51 in the latest trading session, marking a +1.3% move from the prior day. This change outpaced the S&P 500's 0.32% gain on the day. Elsewhere, the Dow saw an upswing of 0.53%, while the tech-heavy Nasdaq appreciated by 0.26%.
The homebuilder's stock has climbed by 8.26% in the past month, exceeding the Construction sector's gain of 4.6% and the S&P 500's gain of 4.51%.
The investment community will be closely monitoring the performance of D.R. Horton in its forthcoming earnings report. The company is scheduled to release its earnings on July 22, 2025. On that day, D.R. Horton is projected to report earnings of $2.93 per share, which would represent a year-over-year decline of 28.54%. In the meantime, our current consensus estimate forecasts the revenue to be $8.82 billion, indicating a 11.53% decline compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.49 per share and a revenue of $34.08 billion, signifying shifts of -19.87% and -7.39%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for D.R Horton. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.08% upward. D.R. Horton currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that D.R. Horton has a Forward P/E ratio of 11.3 right now. This indicates a premium in contrast to its industry's Forward P/E of 9.41.
It's also important to note that DHI currently trades at a PEG ratio of 4.05. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Building Products - Home Builders was holding an average PEG ratio of 2.23 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 177, placing it within the bottom 29% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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D.R. Horton, Inc. (DHI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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