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D.R. Horton (DHI) Suffers a Larger Drop Than the General Market: Key Insights

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D.R. Horton (DHI - Free Report) ended the recent trading session at $151.21, demonstrating a -1.61% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.54%. Meanwhile, the Dow lost 0.53%, and the Nasdaq, a tech-heavy index, lost 0.66%.

Coming into today, shares of the homebuilder had lost 4.62% in the past month. In that same time, the Construction sector lost 3.56%, while the S&P 500 gained 1.5%.

The investment community will be closely monitoring the performance of D.R. Horton in its forthcoming earnings report. The company is scheduled to release its earnings 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%. Alongside, our most recent consensus estimate is anticipating revenue of $7.16 billion, indicating a 7.35% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $14.17 per share and revenue of $37.22 billion, which would represent changes of -1.19% and +1.15%, 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. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 2.61% lower within the past month. D.R. Horton is holding a Zacks Rank of #5 (Strong Sell) right now.

Digging into valuation, D.R. Horton currently has a Forward P/E ratio of 10.85. Its industry sports an average Forward P/E of 9.02, so one might conclude that D.R. Horton is trading at a premium comparatively.

One should further note that DHI currently holds a PEG ratio of 0.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 0.69.

The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 144, placing it within the bottom 43% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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