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Arlington, Texas-based D.R. Horton, Inc. (DHI) engages in acquiring and developing land; and constructing and selling residential homes. With a market cap of $58.6 billion, D.R. Horton operates in the East, North, Southeast, South Central, Southwest, and Northwest regions of the United States.
The housing giant has substantially outperformed the broader market over the past year. Over the past 52 weeks, DHI gained 45.1%, outpacing the S&P 500 Index’s ($SPX) 26.1% returns. In 2024, DHI is up 17.1% compared to SPX’s 16.5% gains on a YTD basis.
Narrowing the focus, DHI has also outperformed the S&P Homebuilders SPDR’s (XHB) 33.8% returns over the past 52 weeks and 15.2% gains on a YTD basis.
D.R. Horton shares surged by 10.1% after the company released its Q3 earnings on Jul. 18, significantly outperforming Wall Street’s expectations. The homebuilder’s revenue surged 2.5% annually to $9.97 billion, and net income per share grew 5.1% to $4.10, surpassing the consensus estimates by 7.9%.
For fiscal 2024, ending next month, analysts expect D.R. Horton to report an EPS growth of 1.5% year over year to $14.03. The company’s earnings surprise history is mixed. It surpassed the consensus estimates in three of the past four quarters while missing on another occasion.
Among the 19 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, two “Moderate Buys,” six “Holds,” and two “Strong Sells.”
This configuration is slightly less bullish than two months before, with 10 analysts recommending a “Strong Buy.”
On Jul. 22, Bank of America (BAC) analyst Rafe Jadrosich maintained a “Buy” rating with a price target of $196.
DHI’s mean price target of $191 represents a premium of 7.3% from current price levels. The Street-high target of $220 indicates a potential upside of 23.6%.
On the date of publication, Aditya Sarawgi 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.
