In the latest close session, D.R. Horton (DHI) was down 2.01% at $152.00. This change lagged the S&P 500's 1.16% loss on the day. Elsewhere, the Dow saw a downswing of 0.47%, while the tech-heavy Nasdaq depreciated by 1.81%.
Prior to today's trading, shares of the homebuilder had gained 12.04% outpaced the Construction sector's gain of 3.84% and the S&P 500's gain of 1.03%.
Analysts and investors alike will be keeping a close eye on the performance of D.R. Horton in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.98, showcasing a 24.14% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $6.71 billion, indicating a 11.83% decline compared to the corresponding quarter of the prior year.
DHI's full-year Zacks Consensus Estimates are calling for earnings of $11.43 per share and revenue of $34.3 billion. These results would represent year-over-year changes of -1.21% and +0.15%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for D.R Horton. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. D.R. Horton currently has a Zacks Rank of #3 (Hold).
Investors should also note D.R. Horton's current valuation metrics, including its Forward P/E ratio of 13.57. This denotes a premium relative to the industry average Forward P/E of 11.77.
It's also important to note that DHI currently trades at a PEG ratio of 1.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Home Builders was holding an average PEG ratio of 1.85 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 215, finds itself in the bottom 13% echelons of all 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.
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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