D.R. Horton (DHI) ended the recent trading session at $177.88, demonstrating a -3.35% change from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.27%. Meanwhile, the Dow experienced a rise of 0.43%, and the technology-dominated Nasdaq saw an increase of 0.37%.
Coming into today, shares of the homebuilder had gained 18.77% in the past month. In that same time, the Construction sector gained 4.79%, while the S&P 500 gained 1.85%.
Analysts and investors alike will be keeping a close eye on the performance of D.R. Horton in its upcoming earnings disclosure. The company's earnings report is set to go public on October 28, 2025. The company is expected to report EPS of $3.29, down 16.07% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $9.46 billion, indicating a 5.44% decline compared to the corresponding quarter of the prior year.
DHI's full-year Zacks Consensus Estimates are calling for earnings of $11.79 per share and revenue of $34.02 billion. These results would represent year-over-year changes of -17.78% and -7.55%, respectively.
Any recent changes to analyst estimates for D.R. Horton should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, D.R. Horton holds a Zacks Rank of #3 (Hold).
Digging into valuation, D.R. Horton currently has a Forward P/E ratio of 15.61. This represents a premium compared to its industry average Forward P/E of 11.93.
It is also worth noting that DHI currently has a PEG ratio of 3.9. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Building Products - Home Builders industry held an average PEG ratio of 2.69.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 229, positioning it in the bottom 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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