D.R. Horton (DHI) Suffers a Larger Drop Than the General Market: Key Insights

In the latest close session, D.R. Horton (DHI) was down 1.16% at $152.61. The stock trailed the S&P 500, which registered a daily loss of 0.94%. Meanwhile, the Dow lost 0.83%, and the Nasdaq, a tech-heavy index, lost 1.02%.

The homebuilder's shares have seen an increase of 3.09% over the last month, not keeping up with the Construction sector's gain of 6.21% and outstripping the S&P 500's loss of 1.3%.

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. In that report, analysts expect D.R. Horton to post earnings of $2.18 per share. This would mark a year-over-year decline of 15.5%. Our most recent consensus estimate is calling for quarterly revenue of $7.7 billion, down 0.47% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $10.53 per share and revenue of $34.01 billion, which would represent changes of -8.99% and -0.7%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for D.R Horton. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection remained stagnant. D.R. Horton is holding a Zacks Rank of #5 (Strong Sell) right now.

Investors should also note D.R. Horton's current valuation metrics, including its Forward P/E ratio of 14.66. This represents a premium compared to its industry average Forward P/E of 14.22.

It is also worth noting that DHI currently has a PEG ratio of 2.38. 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. The Building Products - Home Builders industry had an average PEG ratio of 1.73 as trading concluded yesterday.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 232, putting it in the bottom 6% of all 250+ industries.

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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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

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