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The latest trading session saw D.R. Horton (DHI) ending at $118.27, denoting a +0.75% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.4% for the day. On the other hand, the Dow registered a gain of 0.28%, and the technology-centric Nasdaq increased by 0.39%.
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Shares of the homebuilder witnessed a loss of 7.08% over the previous month, trailing the performance of the Construction sector with its gain of 7.66% and the S&P 500's gain of 6.69%.
The investment community will be closely monitoring the performance of D.R. Horton in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.92, reflecting a 28.78% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $8.82 billion, showing a 11.48% drop compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.41 per share and a revenue of $34.1 billion, representing changes of -20.43% and -7.34%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for D.R. Horton. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 past month, there's been a 1.12% fall in the Zacks Consensus EPS estimate. D.R. Horton currently has a Zacks Rank of #4 (Sell).
In terms of valuation, D.R. Horton is presently being traded at a Forward P/E ratio of 10.29. Its industry sports an average Forward P/E of 9.27, so one might conclude that D.R. Horton is trading at a premium comparatively.
It is also worth noting that DHI currently has a PEG ratio of 3.69. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Building Products - Home Builders industry currently had an average PEG ratio of 1.71 as of yesterday's close.