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D.R. Horton (DHI) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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In the latest trading session, D.R. Horton (DHI - Free Report) closed at $104.30, marking a +0.49% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.18%. Meanwhile, the Dow gained 0.87%, and the Nasdaq, a tech-heavy index, added 1.6%.

The the stock of homebuilder has fallen by 11.37% in the past month, lagging the Construction sector's loss of 6.86% and the S&P 500's loss of 5.17%.

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 November 7, 2023. The company's earnings per share (EPS) are projected to be $3.97, reflecting a 14.99% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $10.06 billion, indicating a 4.32% growth compared to the corresponding quarter of the prior year.

Investors might also notice recent changes to analyst estimates for D.R. Horton. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.04% lower. At present, D.R. Horton boasts a Zacks Rank of #3 (Hold).

With respect to valuation, D.R. Horton is currently being traded at a Forward P/E ratio of 7.39. This denotes a premium relative to the industry's average Forward P/E of 6.94.

We can also see that DHI currently has a PEG ratio of 0.4. 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. The Building Products - Home Builders was holding an average PEG ratio of 0.65 at yesterday's closing price.

The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 26, placing it within the top 11% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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