Stock of the Day

October 30, 2019

D.R. Horton (DHI)

$129.81
-$6.29 (-4.6%)
Market Cap: $41.81B

About D.R. Horton

D.R. Horton, Inc. operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. It engages in the acquisition and development of land; and construction and sale of residential homes in 118 markets across 33 states under the names of D.R. Horton, America's Builder, Express Homes, Emerald Homes, and Freedom Homes. The company constructs and sells single-family detached homes; and attached homes, such as townhomes, duplexes, and triplexes. It also provides mortgage financing services; and title insurance policies, and examination and closing services, as well as engages in the residential lot development business. In addition, the company develops, constructs, owns, leases, and sells multi-family and single-family rental properties; and owns non-residential real estate, including ranch land and improvements. It primarily serves homebuyers. D.R. Horton, Inc. was founded in 1978 and is headquartered in Arlington, Texas.

D.R. Horton Bull Case

Here are some ways that investors could benefit from investing in D.R. Horton, Inc.:

  • The current stock price is around $139.67, reflecting a strong market presence and potential for growth.
  • D.R. Horton, Inc. has a solid market capitalization of approximately $42.90 billion, indicating stability and investor confidence.
  • The company reported a net margin of 12.15%, showcasing its ability to generate profit relative to its revenue.
  • Recent analyst ratings include several "buy" recommendations, suggesting positive sentiment and potential for price appreciation.
  • With a debt-to-equity ratio of 0.26, D.R. Horton, Inc. maintains a healthy balance sheet, indicating lower financial risk compared to its equity base.

D.R. Horton Bear Case

Investors should be bearish about investing in D.R. Horton, Inc. for these reasons:

  • Recent earnings reports showed a miss on EPS estimates, which may raise concerns about the company's short-term performance.
  • Analysts have set varying price targets, with some downgrading their expectations, indicating uncertainty in future growth.
  • The company faces challenges from softer demand and elevated incentives, which could impact profitability in the near term.
  • Insider ownership is relatively low at 0.54%, which may suggest a lack of confidence from those closest to the company.
  • Market volatility, as indicated by a beta of 1.38, suggests that the stock may experience larger price swings compared to the overall market.

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