We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
D.R. Horton (DHI) Laps the Stock Market: Here's Why
Read MoreHide Full Article
D.R. Horton (DHI - Free Report) closed the most recent trading day at $139.61, moving +1.73% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 1.09%. Meanwhile, the Dow gained 1.18%, and the Nasdaq, a tech-heavy index, added 1.03%.
The homebuilder's shares have seen a decrease of 15.21% over the last month, not keeping up with the Construction sector's loss of 8.88% and the S&P 500's loss of 0.71%.
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. The company's upcoming EPS is projected at $2.39, signifying a 15.25% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.16 billion, indicating a 7.35% decrease compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14 per share and revenue of $37.22 billion. These totals would mark changes of -2.37% and +1.15%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for D.R. Horton. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.37% downward. As of now, D.R. Horton holds a Zacks Rank of #4 (Sell).
In the context of valuation, D.R. Horton is at present trading with a Forward P/E ratio of 9.8. This represents a premium compared to its industry's average Forward P/E of 7.94.
Investors should also note that DHI has a PEG ratio of 0.52 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 was holding an average PEG ratio of 0.68 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 146, finds itself in the bottom 42% echelons of all 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
D.R. Horton (DHI) Laps the Stock Market: Here's Why
D.R. Horton (DHI - Free Report) closed the most recent trading day at $139.61, moving +1.73% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 1.09%. Meanwhile, the Dow gained 1.18%, and the Nasdaq, a tech-heavy index, added 1.03%.
The homebuilder's shares have seen a decrease of 15.21% over the last month, not keeping up with the Construction sector's loss of 8.88% and the S&P 500's loss of 0.71%.
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. The company's upcoming EPS is projected at $2.39, signifying a 15.25% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.16 billion, indicating a 7.35% decrease compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14 per share and revenue of $37.22 billion. These totals would mark changes of -2.37% and +1.15%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for D.R. Horton. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.37% downward. As of now, D.R. Horton holds a Zacks Rank of #4 (Sell).
In the context of valuation, D.R. Horton is at present trading with a Forward P/E ratio of 9.8. This represents a premium compared to its industry's average Forward P/E of 7.94.
Investors should also note that DHI has a PEG ratio of 0.52 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 was holding an average PEG ratio of 0.68 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 146, finds itself in the bottom 42% echelons of all 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.