The latest trading session saw D.R. Horton (DHI) ending at $125.68, denoting a -0.89% adjustment from its last day's close. This move was narrower than the S&P 500's daily loss of 1.76%. Elsewhere, the Dow saw a downswing of 1.48%, while the tech-heavy Nasdaq depreciated by 2.64%.

Heading into today, shares of the homebuilder had lost 10.63% over the past month, lagging the Construction sector's loss of 7.94% and the S&P 500's loss of 1.26% in that time.

The upcoming earnings release of D.R. Horton will be of great interest to investors. The company's earnings report is expected on April 17, 2025. The company's earnings per share (EPS) are projected to be $2.72, reflecting a 22.73% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.16 billion, down 10.42% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $13 per share and revenue of $36.71 billion, which would represent changes of -9.34% and -0.24%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for D.R. Horton. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.43% lower. D.R. Horton currently has a Zacks Rank of #4 (Sell).

In the context of valuation, D.R. Horton is at present trading with a Forward P/E ratio of 9.76. For comparison, its industry has an average Forward P/E of 8.08, which means D.R. Horton is trading at a premium to the group.

Investors should also note that DHI has a PEG ratio of 0.54 right now. 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. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 0.9.

The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 239, positioning it in the bottom 5% 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 Report

This article originally published on Zacks Investment Research (zacks.com).

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