
NYSE:DHI
This summary was created by AI, based on 2 opinions in the last 12 months.
D R Horton Inc., currently facing challenges in the homebuilding sector, shows signs of potential recovery, but with caution. Experts point out a possible boost if legislative changes, allowing home purchases using 401K funds without penalties, take effect. However, technical analysis indicates the stock is struggling with a cup-and-handle pattern and is trending downward, having failed to maintain a key support level at $150. Concerns over the Federal Reserve's reluctance to reduce interest rates further complicate the outlook, with projections suggesting the stock could dip to $120-130, reflecting ongoing market hesitance and economic uncertainty.
He did extremely well with the homebuilders back 10-12 years ago and was fortunate enough to get out of these by 2005-2006. They’re now starting to hit his screens again and are interesting situations. It is a volatile environment, but, if you can put up with a little bit of volatility, this would not be a bad idea. His favourite in the group is Ryland Group (RYL-N). From a valuation and exposure standpoint, they are the best positioned.
The largest homebuilder in the world. They operate in 27 states and have $12 billion in revenue. New home sales are growing at greater than 10% in the majority of US states. The inventory of new homes going back to 1988, is just off the lows. The problem has been not enough homes. This company sells into the entry level buyer, and the millennials are just starting to buy homes. If there is a prolonged, economic, slow expansion, there is a pent-up demand for new homes. Dividend yield of 1.1%. (Analysts’ price target is $38.)