D.R. Horton(US:DHI) ZACKS·2025-12-05 00:16Core Viewpoint - D.R. Horton (DHI) is experiencing a decline in stock price and is expected to report lower earnings and revenue in the upcoming earnings disclosure, indicating potential challenges ahead for the company [1][2]. Company Performance - D.R. Horton closed at $160.73, reflecting a -2.59% change from the previous day, underperforming compared to the S&P 500's 0.11% gain [1]. - Over the past month, D.R. Horton shares have increased by 13.58%, while the Construction sector gained 0.75% and the S&P 500 gained 0.08% [1]. Earnings Expectations - The company is projected to report an EPS of $1.97, which is a decrease of 24.52% from the same quarter last year [2]. - Revenue is anticipated to be $6.71 billion, indicating an 11.81% decline compared to the prior year [2]. Full Year Projections - For the full year, earnings are estimated at $11.41 per share, reflecting a -1.38% change from the previous year, while revenue is projected at $34.33 billion, showing a slight increase of +0.24% [3]. Analyst Revisions - Recent revisions to analyst forecasts for D.R. Horton are crucial as they indicate short-term business trends, with positive changes suggesting analyst optimism [3]. Valuation Metrics - D.R. Horton has a Forward P/E ratio of 14.46, which is higher than the industry average Forward P/E of 12.22, indicating a premium valuation [5]. - The company also has a PEG ratio of 1.97, aligning with the industry average, which suggests that the stock's expected earnings growth is factored into its valuation [6]. Industry Ranking - The Building Products - Home Builders industry, which includes D.R. Horton, holds a Zacks Industry Rank of 212, placing it in the bottom 15% of over 250 industries [6]. - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the competitive landscape [7].