D.R. Horton Stock News

Homebuilders, including D.R. Horton, have been some of the best-performing stocks despite being perceived as uninvestable. D.R. Horton's unique business model and scale advantage have positioned it for long-term growth and market share gains. With a target of 10% unit count growth, D.R. Horton is expected to continue growing at a double-digit pace, making it a 'Buy' with a price target of $196 ...

With the next Federal Reserve decision looming, identifying stocks to buy before the next Fed decision is vital to optimizing portfolios. Learning a company's fundamentals is also vital as it reveals its financial health, strategic initiatives, and market positioning.

Homebuilder D.R. Horton, Inc. (DHI) stands out among its industry peers.

Our theme of Housing Stocks, which includes the stocks of home improvement players, building supply companies, and home builders including DR Horton and Pulte Group has gained about 16% year-to-date. This compares to the S&P 500, which has gained almost 15% over the same period.

It's been a rough couple of weeks for the Magnificent Seven stocks. But it's been a boon for some other S&P 500 stocks.

D.R. Horton, Inc. is well-positioned for revenue growth by addressing affordability challenges and increasing community count. Improved customer traffic and demand, along with potential interest rate cuts, are expected to further accelerate revenue growth. Margin expansion is anticipated due to lower incentive costs and improved operational efficiency, supporting a buy rating on DHI stock.

Homebuilding stocks -- hypersensitive to rates and the U.S. economy -- are on the rise as investors rotate away from growth stocks into cyclicals due to increased prospects of an interest rate cut in September.

I recommend a hold rating for D.R. Horton Inc. due to unattractive valuation. Positive outlook for business, benefiting from high mortgage rates driving demand for new homes. Downside risk comes from potential aggressive rate cuts, which is negative for DHI demand.