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Valued at a market cap of $41.9 billion, D.R. Horton, Inc. (DHI) is a homebuilding company based in Arlington, Texas. It acquires and develops land, and constructs and sells residential homes.
This homebuilder has underperformed the broader market over the past 52 weeks. Shares of DHI have gained 18.8% over this time frame, while the broader S&P 500 Index ($SPX) has soared 30.6%. Moreover, on a YTD basis, the stock is up marginally, compared to SPX’s 8.1% rise.
Zooming in further, DHI has outperformed the sector-focused State Street Consumer Discretionary Select Sector SPDR ETF’s (XLY) 18% uptick over the past 52 weeks and a marginal drop on a YTD basis.
On Apr. 21, shares of DHI soared 5.8% after delivering mixed Q2 results. While the company’s revenue declined 2.3% year-over-year to $7.6 billion and missed the consensus estimates, its EPS of $2.24 exceeded Wall Street expectations of $2.15, helping lift investor sentiment. Management stated that its emphasis on affordable housing offerings and disciplined operational execution enabled the company to achieve a consolidated pretax profit margin above the upper end of its guidance range, despite ongoing affordability pressures and cautious consumer demand across the housing market.
For the current fiscal year, ending in September, analysts expect DHI’s EPS to decline 8.6% year over year to $10.57. The company's earnings surprise history is mixed. It topped the consensus estimates in three of the last four quarters, while missing on another occasion.
Among the 21 analysts covering the stock, the consensus rating is a "Hold,” which is based on four “Strong Buy,” 15 “Hold,” and two "Strong Sell” ratings.
The configuration is more bearish than two months ago, with five analysts suggesting a “Strong Buy” rating.
On May 11, Matthew Bouley from Barclays maintained a “Hold” rating on DHI, with a price target of $140.
The mean price target of $167.60 suggests a 15.6% premium to its current price levels, while its Street-high price target of $206 implies a 42.1% potential upside.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
