D.R. Horton (DHI) closed the most recent trading day at $128.69, moving +1.21% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.52% for the day. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 0.52%.
Shares of the homebuilder witnessed a gain of 7.51% over the previous month, beating the performance of the Construction sector with its gain of 3.08%, and the S&P 500's gain of 5.95%.
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The investment community will be closely monitoring the performance of D.R. Horton in its forthcoming earnings report. The company is scheduled to release its earnings on July 22, 2025. On that day, D.R. Horton is projected to report earnings of $2.93 per share, which would represent a year-over-year decline of 28.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.82 billion, down 11.48% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.47 per share and revenue of $34.1 billion, indicating changes of -20.01% and -7.34%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for D.R Horton. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, D.R. Horton boasts a Zacks Rank of #4 (Sell).
In terms of valuation, D.R. Horton is presently being traded at a Forward P/E ratio of 11.09. This expresses a premium compared to the average Forward P/E of 9.73 of its industry.
One should further note that DHI currently holds a PEG ratio of 3.97. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DHI's industry had an average PEG ratio of 2.09 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 228, which puts it in the bottom 8% of all 250+ industries.
