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D.R. Horton (DHI) Rises Yet Lags Behind Market: Some Facts Worth Knowing September 19, 2024
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The most recent trading session ended with D.R. Horton (DHI - Free Report) standing at $197.06, reflecting a +1.48% shift from the previouse trading day's closing. The stock lagged the S&P 500's daily gain of 1.7%. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 2.51%.
The the stock of homebuilder has risen by 4.15% in the past month, lagging the Construction sector's gain of 6.23% and overreaching the S&P 500's gain of 1.27%.
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 October 29, 2024. On that day, D.R. Horton is projected to report earnings of $4.15 per share, which would represent a year-over-year decline of 6.74%. Meanwhile, our latest consensus estimate is calling for revenue of $10.24 billion, down 2.54% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $14 per share and a revenue of $37.02 billion, demonstrating changes of +1.3% and +4.41%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for D.R. Horton. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 has remained steady. D.R. Horton is currently a Zacks Rank #3 (Hold).
In terms of valuation, D.R. Horton is presently being traded at a Forward P/E ratio of 13.87. This indicates a premium in contrast to its industry's Forward P/E of 10.34.
It is also worth noting that DHI currently has a PEG ratio of 0.9. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DHI's industry had an average PEG ratio of 1.02 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 43, this industry ranks in the top 17% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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The most recent trading session ended with D.R. Horton (DHI - Free Report) standing at $197.06, reflecting a +1.48% shift from the previouse trading day's closing. The stock lagged the S&P 500's daily gain of 1.7%. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 2.51%.
The the stock of homebuilder has risen by 4.15% in the past month, lagging the Construction sector's gain of 6.23% and overreaching the S&P 500's gain of 1.27%.
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 October 29, 2024. On that day, D.R. Horton is projected to report earnings of $4.15 per share, which would represent a year-over-year decline of 6.74%. Meanwhile, our latest consensus estimate is calling for revenue of $10.24 billion, down 2.54% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $14 per share and a revenue of $37.02 billion, demonstrating changes of +1.3% and +4.41%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for D.R. Horton. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 has remained steady. D.R. Horton is currently a Zacks Rank #3 (Hold).
In terms of valuation, D.R. Horton is presently being traded at a Forward P/E ratio of 13.87. This indicates a premium in contrast to its industry's Forward P/E of 10.34.
It is also worth noting that DHI currently has a PEG ratio of 0.9. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DHI's industry had an average PEG ratio of 1.02 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 43, this industry ranks in the top 17% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.