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D.R. Horton Shares Dip Ahead of Earnings Amid Underperformance in Construction Sector

EditorVenkatesh Jartarkar
Published 10/20/2023, 02:47 AM
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect
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D.R. Horton (NYSE: DHI) shares closed at $101.24 on Friday, marking a 1.17% drop from its previous close. This performance underperformed the S&P 500's loss of 0.85% and trailed the Dow and Nasdaq's losses of 0.75% and 0.96% respectively. Over the past month, DHI shares have depreciated by 9.51%, underperforming both the Construction sector and S&P 500.

Analysts are closely watching the company as it prepares to announce its earnings on November 7, 2023. They project that DHI will reveal earnings per share of $3.97, a year-over-year decline of 14.99%. However, they also anticipate year-over-year revenue growth of 4.32%, with revenues expected to reach $10.06 billion, up from the same quarter last year.

The Zacks Rank system, known for its proven track record, rates DHI as a #4 (Sell). The company's Forward P/E ratio stands at 7.33, which is above the industry average of 7.21, suggesting the stock may be overvalued compared to its peers. Meanwhile, DHI's PEG ratio is 0.4, below the industry's average PEG ratio of 0.67, indicating that the company's growth might be undervalued by investors.

DHI is part of the Building Products - Home Builders industry which currently holds a Zacks Industry Rank of 78.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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