D.R. Horton (DHI) Laps the Stock Market: Here's Why

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D.R. Horton (DHI) Laps the Stock Market: Here's Why

D.R. Horton (DHI) ended the recent trading session at $144.33, demonstrating a +1.18% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 1.02%. Elsewhere, the Dow saw an upswing of 0.63%, while the tech-heavy Nasdaq appreciated by 1.23%.

Shares of the homebuilder witnessed a gain of 1.53% over the previous month, trailing the performance of the Construction sector with its gain of 2.73%, and outperforming the S&P 500's gain of 0.63%.

Market participants will be closely following the financial results of D.R. Horton in its upcoming release. The company plans to announce its earnings on April 21, 2026. The company's earnings per share (EPS) are projected to be $2.15, reflecting a 16.67% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.68 billion, indicating a 0.63% decrease compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.46 per share and a revenue of $33.98 billion, signifying shifts of -9.59% and -0.79%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for D.R Horton. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.45% lower within the past month. D.R. Horton presently features a Zacks Rank of #3 (Hold).

In terms of valuation, D.R. Horton is presently being traded at a Forward P/E ratio of 13.64. This expresses a premium compared to the average Forward P/E of 12.85 of its industry.

It is also worth noting that DHI currently has a PEG ratio of 2.22. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 1.71.

The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 230, positioning it in the bottom 6% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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D.R. Horton, Inc. (DHI): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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