Trades at 9x earnings. Have been paying down debt. Housing stocks have bottomed, and housing looks good this year and in 2024. It's a blue chip in housing, despite its higher beta. Last year, you had to be defensive, but you need to be more offensive this year.
It reports Thursday. He's very worried about a slowdown in the homebuilding business. Listen closely to the quarterly call. Home deals are down because of soaring mortgage rates.
When the market turns, buying US homebuilders is like catching a falling knife. The risk/reward looks in your favour. Housing shortage in the US. Many of them have great business models. Likes the business model of DHI. But you're fighting the macro of mortgage rates at 10 to 15-year highs. Not a great setup from a sentiment perspective. As long as builders can sell homes, and they continue to be affordable, they have great earnings power.
The sell-off has been painful, but he likes the stock. Unfortunately, this stock is tethered to wider negative market conditions. He's holding on; he bought it so cheaply and doesn't see a share collapse.
(A Top Pick Jan 12/21, Up 32.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with DHI has triggered its stop at $90. We are recommending covering the balance of the position at this time. Combined with the previous recommendation to cover 50%, this will result in a net investment gain just over 30%.
(A Top Pick Jan 12/21, Up 38.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with DHI is progressing well. We are now recommending to trail up the stop (from $75) to $90. If triggered, this would all but insure a total investment return over 30%, including the previous recommendation to cover 50% of the position.
(A Top Pick Jan 12/21, Up 29.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with DHI as achieved its $89 objective. To be disciplined, we recommend covering 50% of the position and trailing up the stop (from $59) to $75. This would all but guarantee a return on investment of 19%.
It's a good entry point for the long-term. We're in the supercycle for housing and DR is the biggest US homebuilder and covers. Earnings growth is really strong. He likes to trade this, . He's bullish US housing and likes DR's positioning here.
He still likes it. DHI is a spec builder--they'll have a lot more supply despite concerns over lumber prices, rising wages and especially higher interest rates. Every housing recovery happens when rates rise. Play the names that already have the housing supply on the market. Stick with this.
Stockchase Research Editor: Michael O'Reilly RBC recently upgraded home builder DHI based on current trends in the housing market and its affordable regional focus (largely in Texas) is well positioned. It trades at only 10.5x earnings, compared to 32x for the construction space. With a PEG ratio of 0.72, it is good value based on EPS growth expected to be over 13% next year, following a 49% increase this year. It pays a small dividend backed by a payout ratio of only 10%. We would buy this with a stop-loss at $59, looking to achieve $89 -- over 30% upside potential. Yield 1.18% (Analysts’ price target is $89.21)
On Wednesday we'll see US home sales data, which he feels remain strong, but there isn't enough supply. Toll and DHI (DR Horton) are buys here to capitalize on this shortage.
Shares in US homebuilders have come off. Backup in interest rates is stalling demand for houses in US. Similar to auto market, in that once it starts to roll, it’s not something you want to trade over the short term.
(A Top Pick July 18/17 Up 19%). This is a leader in the home building space. He would still be a buyer here. There is a shortage of lots to build on and getting permit approvals. There are tons of buyers, just not enough properties to meet the demand.
D R Horton Inc. is a American stock, trading under the symbol DHI (previously DHI-N on Stockchase) on the New York Stock Exchange (DHI). It is usually referred to as NYSE:DHI or DHI
Is D R Horton Inc. a buy or a sell?
In the last year, 1 stock analyst issued a Buy, Sell, or Hold rating on DHI (previously DHI-N on Stockchase). 0 analysts recommended to BUY and 1 analyst recommended to SELL the stock. The latest stock analyst rating is BUY. Read the latest stock experts' ratings for D R Horton Inc..
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