D.R. Horton (DHI) Registers a Bigger Fall Than the Market: Important Facts to Note

In This Article:

D.R. Horton (DHI) closed the most recent trading day at $124.81, moving -1.68% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.27%.

The stock of homebuilder has risen by 0.46% in the past month, lagging the Construction sector's gain of 3.59% and the S&P 500's gain of 6.9%.

The upcoming earnings release of D.R. Horton will be of great interest to investors. The company's earnings report is expected on July 22, 2025. The company's upcoming EPS is projected at $2.92, signifying a 28.78% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $8.82 billion, indicating a 11.48% decline compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.41 per share and a revenue of $34.1 billion, signifying shifts of -20.43% and -7.34%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for D.R Horton. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. D.R. Horton currently has a Zacks Rank of #4 (Sell).

Looking at valuation, D.R. Horton is presently trading at a Forward P/E ratio of 11.13. This expresses a premium compared to the average Forward P/E of 9.77 of its industry.

We can additionally observe that DHI currently boasts a PEG ratio of 3.99. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 1.82 based on yesterday's closing prices.

The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 220, positioning it in the bottom 11% of all 250+ industries.