Here's Why D.R. Horton (DHI) Fell More Than Broader Market

D.R. Horton (DHI) closed at $139.42 in the latest trading session, marking a -1.48% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.77%. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq lost 0.92%.

The stock of homebuilder has fallen by 3.99% in the past month, leading the Construction sector's loss of 4.62% and undershooting the S&P 500's gain of 0.96%.

Investors will be eagerly watching for the performance of D.R. Horton in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 29, 2026. The company's earnings per share (EPS) are projected to be $3.06, reflecting a 0.66% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $9.03 billion, showing a 6.66% drop compared to the year-ago quarter.

DHI's full-year Zacks Consensus Estimates are calling for earnings of $10.45 per share and revenue of $32.81 billion. These results would represent year-over-year changes of -9.68% and -4.2%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for D.R Horton. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.07% decrease. D.R. Horton presently features a Zacks Rank of #4 (Sell).

In terms of valuation, D.R. Horton is currently trading at a Forward P/E ratio of 13.54. This valuation marks a premium compared to its industry average Forward P/E of 13.18.

We can additionally observe that DHI currently boasts a PEG ratio of 2.25. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 2.48.

The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 234, finds itself in the bottom 5% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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).