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D.R. Horton (DHI) closed the latest trading day at $139.90, indicating a +1.49% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.16%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, lost 0.06%.
Coming into today, shares of the homebuilder had lost 8.97% in the past month. In that same time, the Construction sector lost 11.33%, while the S&P 500 lost 2.7%.
Investors will be eagerly watching for the performance of D.R. Horton in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 21, 2025. On that day, D.R. Horton is projected to report earnings of $2.41 per share, which would represent a year-over-year decline of 14.54%. Meanwhile, our latest consensus estimate is calling for revenue of $7.18 billion, down 7.12% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $14.12 per share and revenue of $37.25 billion, which would represent changes of -1.53% and +1.23%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for D.R. Horton. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. The Zacks Consensus EPS estimate has moved 0.06% lower within the past month. As of now, D.R. Horton holds a Zacks Rank of #4 (Sell).
Digging into valuation, D.R. Horton currently has a Forward P/E ratio of 9.91. This represents a premium compared to its industry's average Forward P/E of 7.81.
One should further note that DHI currently holds a PEG ratio of 0.52. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 0.63.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 227, placing it within the bottom 10% of over 250 industries.