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This story originally appeared on Zacks
D.R. Horton (DHI) closed at $87.87 in the latest trading session, marking a -0.55% move from the prior day. This move was narrower than the S&P 500’s daily loss of 1.89%. At the same time, the Dow lost 1.3%, and the tech-heavy Nasdaq lost 0.17%.
– Zacks
Prior to today’s trading, shares of the homebuilder had lost 15.78% over the past month. This has lagged the Construction sector’s loss of 6.37% and the S&P 500’s loss of 1.79% in that time.
Wall Street will be looking for positivity from D.R. Horton as it approaches its next earnings report date. This is expected to be February 2, 2022. The company is expected to report EPS of $2.80, up 30.84% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.74 billion, up 13.57% from the year-ago period.
DHI’s full-year Zacks Consensus Estimates are calling for earnings of $14.56 per share and revenue of $33.74 billion. These results would represent year-over-year changes of +27.61% and +21.47%, respectively.
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 such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. D.R. Horton is currently a Zacks Rank #2 (Buy).
Looking at its valuation, D.R. Horton is holding a Forward P/E ratio of 6.07. For comparison, its industry has an average Forward P/E of 5.36, which means D.R. Horton is trading at a premium to the group.
Investors should also note that DHI has a PEG ratio of 0.6 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. The Building Products – Home Builders industry currently had an average PEG ratio of 0.25 as of yesterday’s close.
The Building Products – Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 40, which puts it in the top 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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