DHI Stock Recent News

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

Focus on companies with proven business models, strong management, and potential for long-term market share growth in large industries. M&T Bank, Ashtead Group, Installed Building Products, Fiserv, Ferguson, Kinsale Capital Group, Align Technologies, and Medpace Holdings are highlighted investments. Emphasis on conservative financial practices, market dominance, and strategic capital deployment to drive future growth and shareholder value.

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.