D.R. Horton (DHI) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, D.R. Horton (DHI) closed at $83.75, marking a -0.26% move from the previous day. This move lagged the S&P 500's daily gain of 1.15%.

Prior to today's trading, shares of the homebuilder had lost 13.12% over the past month. This has lagged the Construction sector's loss of 7.4% and the S&P 500's loss of 4.67% in that time.

Investors will be hoping for strength from DHI as it approaches its next earnings release, which is expected to be November 9, 2021. The company is expected to report EPS of $2.83, up 26.34% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.82 billion, up 22.16% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for DHI. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.25% lower within the past month. DHI is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that DHI has a Forward P/E ratio of 7.48 right now. For comparison, its industry has an average Forward P/E of 6.59, which means DHI is trading at a premium to the group.

We can also see that DHI currently has a PEG ratio of 0.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Home Builders industry currently had an average PEG ratio of 0.83 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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