D.R. Horton (DHI) ended the recent trading session at $126.42, demonstrating a +0.35% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.5%. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq depreciated by 1.21%.
The the stock of homebuilder has fallen by 11.85% in the past month, lagging the Construction sector's loss of 10.1% and the S&P 500's loss of 0.47%.
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 April 17, 2025. The company is forecasted to report an EPS of $2.74, showcasing a 22.16% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.16 billion, down 10.42% from the year-ago period.
DHI's full-year Zacks Consensus Estimates are calling for earnings of $13.04 per share and revenue of $36.71 billion. These results would represent year-over-year changes of -9.07% and -0.24%, respectively.
It is also important to note the recent changes to analyst estimates for D.R. Horton. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.6% decrease. At present, D.R. Horton boasts a Zacks Rank of #5 (Strong Sell).
Investors should also note D.R. Horton's current valuation metrics, including its Forward P/E ratio of 9.66. This expresses a premium compared to the average Forward P/E of 8.22 of its industry.
Meanwhile, DHI's PEG ratio is currently 0.53. 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. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 0.92.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 244, this industry ranks in the bottom 3% of all industries, numbering over 250.
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.
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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This article originally published on Zacks Investment Research (zacks.com).
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