D.R. Horton(DHI) ZACKS·2024-07-19 17:00Core Viewpoint - D.R. Horton (DHI) has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive earnings outlook that may lead to increased buying pressure and stock price appreciation [1][2]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for D.R. Horton for the fiscal year ending September 2024 is projected at $14.29 per share, reflecting a 3.4% increase from the previous year [5]. - Over the past three months, the consensus estimate for D.R. Horton has risen by 0.5%, indicating a trend of increasing earnings estimates [5]. Zacks Rating System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with D.R. Horton now positioned in the top 5% of Zacks-covered stocks, suggesting potential for near-term stock price increases [4][7]. - Historically, Zacks Rank 1 stocks have generated an average annual return of +25% since 1988, highlighting the effectiveness of the rating system in identifying strong investment opportunities [4]. Market Dynamics - The relationship between earnings estimate revisions and stock price movements is well-established, with institutional investors often driving price changes based on these revisions [3]. - The upgrade of D.R. Horton reflects an improvement in the company's underlying business, which is expected to be recognized by investors through increased stock prices [3].