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D.R. Horton (DHI) Dips More Than Broader Market: What You Should Know
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The latest trading session saw D.R. Horton (DHI - Free Report) ending at $101.24, denoting a -1.17% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.85%. Meanwhile, the Dow lost 0.75%, and the Nasdaq, a tech-heavy index, lost 0.96%.
Shares of the homebuilder have depreciated by 9.51% over the course of the past month, underperforming the Construction sector's loss of 6.14% and the S&P 500's loss of 3.02%.
Market participants will be closely following the financial results of D.R. Horton in its upcoming release. The company plans to announce its earnings on November 7, 2023. In that report, analysts expect D.R. Horton to post earnings of $3.97 per share. This would mark a year-over-year decline of 14.99%. Simultaneously, our latest consensus estimate expects the revenue to be $10.06 billion, showing a 4.32% escalation compared to the year-ago quarter.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for D.R. Horton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.4% lower. D.R. Horton currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that D.R. Horton has a Forward P/E ratio of 7.33 right now. Its industry sports an average Forward P/E of 7.21, so one might conclude that D.R. Horton is trading at a premium comparatively.
We can also see that DHI currently has a PEG ratio of 0.4. 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 0.67.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 78, positioning it in the top 31% of all 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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D.R. Horton (DHI) Dips More Than Broader Market: What You Should Know
The latest trading session saw D.R. Horton (DHI - Free Report) ending at $101.24, denoting a -1.17% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.85%. Meanwhile, the Dow lost 0.75%, and the Nasdaq, a tech-heavy index, lost 0.96%.
Shares of the homebuilder have depreciated by 9.51% over the course of the past month, underperforming the Construction sector's loss of 6.14% and the S&P 500's loss of 3.02%.
Market participants will be closely following the financial results of D.R. Horton in its upcoming release. The company plans to announce its earnings on November 7, 2023. In that report, analysts expect D.R. Horton to post earnings of $3.97 per share. This would mark a year-over-year decline of 14.99%. Simultaneously, our latest consensus estimate expects the revenue to be $10.06 billion, showing a 4.32% escalation compared to the year-ago quarter.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for D.R. Horton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.4% lower. D.R. Horton currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that D.R. Horton has a Forward P/E ratio of 7.33 right now. Its industry sports an average Forward P/E of 7.21, so one might conclude that D.R. Horton is trading at a premium comparatively.
We can also see that DHI currently has a PEG ratio of 0.4. 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 0.67.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 78, positioning it in the top 31% of all 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.