DHI Stock Recent News
DHI LATEST HEADLINES
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.
BofA Securities analyst Rafe Jadrosich downgraded D.R. Horton, Inc. DHI and Smith Douglas Homes Corp. SDHC, citing a tough outlook for homebuilder stocks as the spring selling season approaches.
The Investment Committee debate the latest Calls of the Day.
A mostly challenging outlook for home builders caused analysts to reshuffle ratings on most of the big names in the sector on Monday.
Following the best week since November, U.S. markets posted their best first-week of a Presidential term since 1985 as investors saw business-friendly undertones in the early days of the new administration. Striking an agreeable tone for markets that were wary of the inflationary impacts of trade and fiscal policy, President Trump focused on supply side policies and didn't immediately implement sweeping tariffs. Posting record-highs for the first time since early December, the S&P 500 gained another 1.7% on the week, notching back-to-back weekly gains following a stretch of 4-of-5 weekly losses.
Soft Q1 results for D.R. Horton (DHI), including a 7% drop in EPS and decreased home sales revenue confirmed the need for tempered full-year expectations. The company reiterated full-year guidance with flattish revenue growth, a small increase in home closings. DHI's low valuation, aggressive buyback plans, and challenging housing market dynamics suggest a low-risk hold, but not a relative bargain.
How expensive is the stock market right now? The S&P 500 Shiller CAPE ratio is near its second-highest level ever.
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.
U.S. stocks traded higher midway through trading, with the Dow Jones index gaining over 450 points on Tuesday.
The Investment Committee discuss how to trade some of their stocks on the move today.