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D.R. Horton (DHI) ended the recent trading session at $159.68, demonstrating a -1.04% swing from the preceding day's closing price. This change lagged the S&P 500's 0.19% loss on the day. Elsewhere, the Dow saw a downswing of 0.55%, while the tech-heavy Nasdaq depreciated by 0.18%.
The homebuilder's stock has dropped by 3.22% in the past month, falling short of the Construction sector's gain of 6.66% and the S&P 500's gain of 6.66%.
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 January 21, 2025. The company's upcoming EPS is projected at $2.41, signifying a 14.54% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.16 billion, down 7.35% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $14.26 per share and revenue of $37.22 billion, which would represent changes of -0.56% and +1.15%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for D.R. Horton. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.48% lower. D.R. Horton is currently a Zacks Rank #5 (Strong Sell).
From a valuation perspective, D.R. Horton is currently exchanging hands at a Forward P/E ratio of 11.32. Its industry sports an average Forward P/E of 9.62, so one might conclude that D.R. Horton is trading at a premium comparatively.
We can additionally observe that DHI currently boasts a PEG ratio of 0.59. 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. The Building Products - Home Builders was holding an average PEG ratio of 0.73 at yesterday's closing price.