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
Homebuilder stocks are trading at low multiples despite consensus estimates predicting 22%-82% earnings growth by 2028, indicating potential undervaluation. The U.S. housing market faces an affordability crisis, but long-term undersupply and strong fundamentals make homebuilders attractive investments. Homebuilders have improved margins, low debt, and strong free cash flow, positioning them well for future growth and share buybacks.
A mostly challenging outlook for home builders caused analysts to reshuffle ratings on most of the big names in the sector on Monday.
U.S. homebuilding giant D.R. Horton (DHI -0.93%) reported fiscal 2025 first-quarter earnings on Tuesday, Jan. 21, which topped analysts' consensus estimates.