Stock Information
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DHID.R. Horton Inc.

Upcoming Earnings

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Company Info

CEO

David V. Auld

Location

Texas, USA

Exchange

NYSE

Website

https://drhorton.com

Summary

D.

Company Info

CEO

David V. Auld

Location

Texas, USA

Exchange

NYSE

Website

https://drhorton.com

Summary

D.

AI Insights for DHI
2 min read

Quick Summary

D.R. Horton, Inc. is a leading homebuilding company, recognized as one of the largest in the United States. The company is engaged in constructing and selling single-family detached homes and attached residences such as townhomes, duplexes, and triplexes, mainly catering to first-time and move-up buyers. Besides home construction, D.R. Horton offers a range of associated services including mortgage financing, title insurance, and closing services, allowing it to support customers through the entire home buying process. Its operations are geographically diversified, spanning the East, North, Southeast, South Central, Southwest, and Northwest regions of the country. D.R. Horton’s customer base primarily consists of individuals and families seeking new homes, as well as investors interested in residential properties.

The Bull Case

  • Horton benefits from its status as the largest US homebuilder, providing considerable scale and operational flexibility.
  • Its geographic and business diversification, including mortgage, rental, and title services, enhance financial stability and allow it to weather downturns more effectively than many peers.
  • The company’s strong balance sheet and capital efficiency afford it the ability to invest in new technology and market opportunities.
  • Its focus on first-time homebuyers, a large and resilient segment, helps sustain steady demand.
  • Finally, DHI’s brand reputation, established sales networks, and consistent profitability reinforce its leadership in the construction sector.

The Bear Case

  • The company faces ongoing risks from narrowing profit margins due to the need for price reductions and buyer incentives in a high interest rate environment.
  • Reliance on the US residential housing market exposes DHI to regional downturns and macroeconomic headwinds, such as rising mortgage rates and declining affordability.
  • Margin compression is further compounded by increasing input costs and labor constraints.
  • Despite efforts at diversification, a substantial proportion of revenue comes from volatile homebuilding activity.
  • In addition, the homebuilding industry is capital-intensive and subject to regulatory and environmental compliance that can inhibit flexibility.

Key Risks

  • Key risks for D.R.
  • Horton stem from fluctuations in mortgage rates, which heavily influence housing affordability and demand.
  • Persistent inflation, tariffs, or supply chain disruptions could further elevate construction costs and compress margins.
  • Economic slowdowns, rising unemployment, or tighter credit conditions may dampen buyer sentiment and reduce home sales.

What to Watch

UpcomingDuring the most recent quarter, D.R.
UpcomingHorton surpassed analyst expectations for both earnings and revenue, posting an EPS of $3.36 on revenue of $9.23 billion.
UpcomingThe company reported stronger-than-anticipated net home sales, despite ongoing challenges such as high mortgage rates and the need to offer price cuts and incentives.
ExpectedFor the upcoming quarter, analysts expect D.R.

Price Drivers

  • Horton’s stock price is highly influenced by its quarterly earnings performance, which is subject to fluctuations in home sales and profit margins.
  • Macroeconomic factors such as mortgage rates, housing affordability, and overall demand for new homes play significant roles in shaping investor sentiment.
  • Recent trends in tariffs, input costs (like lumber and labor), and government policies impacting the housing market can also drive stock performance.
  • Analyst estimates and revised forward guidance, often prompted by market conditions or company strategy, further influence price movements.

Recent News

  • Horton has remained in the spotlight due to a mix of positive and negative developments in recent months.
  • It reported a significant uptick in share price following an earnings beat, though year-over-year results were down and margin concerns persist.
  • The company also garnered attention for its investment in an AI-focused mortgage startup, reflecting a push towards innovation in home financing.
  • Analyst ratings have been volatile, with recent downgrades highlighting concerns over declining earnings estimates and sector underperformance.

Market Trends

  • The US housing market is currently characterized by uncertainty driven by high mortgage rates, above-average home prices, and constrained affordability.
  • Tariffs and rising material costs continue to pressure construction margins.
  • Despite these challenges, housing inventory remains tight, supporting prices and creating opportunities for builders able to navigate the costs.
  • Recent market sentiment reflects optimism for interest rate cuts, which could revive housing demand and support homebuilder stocks.

AI-generated summary. Not investment advice. DYOR.

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Topics: Company overview • Products • Competitors • Strengths & Risks

Symbol's posts

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@starcahier 1 month ago

Markets tanked today on Greenland tariff fears

Markets tanked today on Greenland tariff fears

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finance.yahoo.com

| Stock market today: Dow plummets 800 points, S&P 500, Nasdaq sink over 2% as Trump's Greenland threats clobber stocks

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@ReaderMed143 2 months ago

U.S. Housing Market Still Too Hot?

U.S. Housing Market Still Too Hot?

Home prices keep climbing even with higher mortgage rates. Builders like and are benefiting big-time. 

At this point, is the “housing crash” ever actually happening? Or is demand just too strong?

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@kewur 4 months ago

If Buffett Picked a Stock Today, Would Home Depot Make the Cut?

If Buffett Picked a Stock Today, Would Home Depot Make the Cut?

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www.fool.com

| If I Could Pick Stocks for Warren Buffett, I'd Choose This One | The Motley Fool

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@kewur 6 months ago

Markets Soar as Powell Signals Possible Rate Cuts After Weak Jobs Data

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@SayAdventure663 9 months ago

New Construction?

New Construction?

Anyone else seeing massive amounts of new construction in their area?   and    have absolutely invaded my state. It's not just me either, friends and family in other states have been reporting similar things near them.

Personally, I'm a huge fan. The housing market is absolutely insane right now and I'm a firm believer the only way out is more supply and the White House has echoed similar thoughts. Is home building going to explode all across the nation soon?

Speaking just in my area, new construction is a deal too. I can get a 4bed/3bath for-sale-by-owner for $350k-$400k at a ~7.5% interest rate and be on the hook for all closing costs and etc. Versus, I can get a brand new 4bed/3bath from a home builder for $330k-$350k with credit toward closing (I've seen as high as $10k) and interest rate credits (I've seen as low as 4.5%). It's just a better deal. 

Is this profitable though? is down like 7% this year and is down more than 10%. Is this the buying opportunity of a lifetime or are these builders not the future?

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