In the closing of the recent trading day, D.R. Horton (DHI) stood at $128.84, denoting a -1.75% change from the preceding trading day.
The U.S. Bureau of Labor Statistics (BLS) released its February jobs report, showing a modest 151,000 jobs added and close to the 160,000 expected.
D.R. Horton, like all US homebuilders, is experiencing a major drawdown in the midst of macroeconomic worries. Increasing inflation worries, elevated mortgage rates, and tariff concerns, are all converging to cause an industry selloff. During this period, experienced cyclical investors know to focus on the right metrics so that they will pick the right player ahead of the upward cycle, which will eventually come.
D.R. Horton is rated a strong buy with 25% upside potential due to anticipated declines in long-term Treasury yields below 4% in 2025. DHI's sensitivity to interest rates, due to leverage to first-time homebuyers, has led to underperformance, but falling rates should catalyze a significant rally. The company's need to offer rate buydowns and incentives impacts average selling prices and gross margins, but these measures are necessary to attract buyers.
With one more hour to the closing bell, Julie Hyman and Josh Lipton break down the day's top market stories while speaking to Wall Street experts on this episode of Market Domination. Truist co-Chief Investment Officer and chief market strategist Keith Lerner comes on the program after downgrading equities (^DJI, ^IXIC, ^GSPC) to Neutral, outlining the "soft patch" appearing in recent economic data.
D.R. Horton (DHI) closed the most recent trading day at $126.42, moving +0.35% from the previous trading session.
D.R. Horton (DHI) reported earnings 30 days ago. What's next for the stock?
D.R. Horton, Inc. (NYSE:DHI ) Barclays 42nd Annual Industrial Select Conference Call February 19, 2025 3:00 PM ET Company Participants Jessica Hansen - Senior Vice President, Investor Relations & Communications Conference Call Participants Matthew Bouley - Barclays Matthew Bouley All right. Hello, everyone.
Buy low, sell high. That has been a good strategy for investors for a long time.
Shares of several homebuilders and construction companies lost ground Monday on worries that new tariffs could raise building costs.
Most stocks have experienced a significant downturn in January 2025, with many indices reflecting a decline of around 20%.
Here's Why D.R. Horton Is Looking Attractive