D.R. Horton (DHI) Rises Yet Lags Behind Market: Some Facts Worth Knowing

Company Performance - D.R. Horton (DHI) stock closed at $187.53, with a slight increase of +0.01% compared to the previous day, underperforming the S&P 500 which gained 0.45% [1] - Over the past month, D.R. Horton shares have increased by 8.98%, significantly outperforming the Construction sector's gain of 1.61% and the S&P 500's gain of 2.54% [1] - The upcoming earnings report on October 29, 2024, is projected to show earnings of$ 4.14 per share, reflecting a year-over-year decline of 6.97%, with anticipated revenue of $10.24 billion, indicating a 2.54% decrease from the same quarter last year [1] Earnings Estimates - Full-year Zacks Consensus Estimates for D.R. Horton predict earnings of$ 14.03 per share and revenue of $37.02 billion, representing year-over-year changes of +1.52% and +4.41%, respectively [2] - Recent changes in analyst estimates are crucial as they reflect near-term business trends, with positive revisions indicating a favorable outlook on the company's health and profitability [2] Valuation Metrics - D.R. Horton has a Forward P/E ratio of 13.37, which is a premium compared to the industry average Forward P/E of 9.53 [3] - The company holds a PEG ratio of 0.87, which is lower than the industry average PEG ratio of 0.96, indicating a potentially undervalued position relative to its projected earnings growth [3] Industry Context - The Building Products - Home Builders industry, part of the Construction sector, holds a Zacks Industry Rank of 22, placing it in the top 9% of over 250 industries [4] - The strength of the industry is measured by the Zacks Industry Rank, which is based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [4]