In the latest close session, D.R. Horton (DHI) was up +1.55% at $159.71. This change outpaced the S&P 500's 0.16% gain on the day. Elsewhere, the Dow saw an upswing of 0.17%, while the tech-heavy Nasdaq appreciated by 0.26%.
The homebuilder's shares have seen an increase of 0.53% over the last month, not keeping up with the Construction sector's gain of 5.01% and the S&P 500's gain of 1.89%.
Investors will be eagerly watching for the performance of D.R. Horton in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 20, 2026. On that day, D.R. Horton is projected to report earnings of $1.96 per share, which would represent a year-over-year decline of 24.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.71 billion, down 11.93% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.37 per share and a revenue of $34.26 billion, signifying shifts of -1.73% and +0.04%, respectively, from the last year.
Any recent changes to analyst estimates for D.R. Horton should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.55% downward. D.R. Horton currently has a Zacks Rank of #4 (Sell).
In terms of valuation, D.R. Horton is presently being traded at a Forward P/E ratio of 13.83. This expresses a premium compared to the average Forward P/E of 12.48 of its industry.
One should further note that DHI currently holds a PEG ratio of 1.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Home Builders industry currently had an average PEG ratio of 1.74 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 235, positioning it in the bottom 5% 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.
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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