Why D.R. Horton (DHI) Dipped More Than Broader Market Today

In the latest trading session, D.R. Horton (DHI) closed at $145.28, marking a -1.63% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.21%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, added 0.01%.

Shares of the homebuilder have depreciated by 3.79% over the course of the past month, outperforming the Construction sector's loss of 6.9%, and lagging the S&P 500's loss of 2.26%.

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 April 21, 2026. The company is expected to report EPS of $2.18, down 15.5% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $7.7 billion, reflecting a 0.47% fall from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.52 per share and a revenue of $34.01 billion, indicating changes of -9.08% and -0.7%, respectively, from the former year.

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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.13% downward. Right now, D.R. Horton possesses a Zacks Rank of #5 (Strong Sell).

In the context of valuation, D.R. Horton is at present trading with a Forward P/E ratio of 14.04. This valuation marks a premium compared to its industry average Forward P/E of 12.93.

Also, we should mention that DHI has a PEG ratio of 2.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Home Builders industry currently had an average PEG ratio of 1.52 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 240, this industry ranks in the bottom 3% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.