D.R. Horton (DHI) closed at $157.46 in the latest trading session, marking a -3.96% move from the prior day. This change lagged the S&P 500's 0.81% gain on the day. On the other hand, the Dow registered a gain of 0.63%, and the technology-centric Nasdaq increased by 1.26%.
The homebuilder's shares have seen an increase of 10.34% over the last month, surpassing the Construction sector's gain of 8.81% and the S&P 500's loss of 0.25%.
The investment community will be paying close attention to the earnings performance of D.R. Horton in its upcoming release. The company is slated to reveal its earnings on April 21, 2026. The company is predicted to post an EPS of $2.18, indicating a 15.5% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $7.7 billion, showing a 0.47% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.53 per share and a revenue of $34.01 billion, signifying shifts of -8.99% and -0.7%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for D.R Horton. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.99% lower within the past month. At present, D.R. Horton boasts a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that D.R. Horton has a Forward P/E ratio of 15.57 right now. Its industry sports an average Forward P/E of 15.01, so one might conclude that D.R. Horton is trading at a premium comparatively.
It is also worth noting that DHI currently has a PEG ratio of 2.53. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 2.24.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 241, this industry ranks in the bottom 2% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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