
NYSE:DHI
This summary was created by AI, based on 2 opinions in the last 12 months.
The reviews regarding D.R. Horton Inc. highlight a cautious outlook on the homebuilding industry. One expert notes that although the sector has faced disappointments, there are potential positive changes on the horizon, such as proposed regulatory changes that could boost home buying. However, another expert expresses concern over the stock's current performance, particularly its failure to establish a bullish cup-and-handle pattern and its recent downtrend below critical support levels. The outlook is dampened by Federal Reserve signals that suggest the possibility of maintaining or increasing interest rates, which could further pressure homebuilding stocks. Overall, while there are some indicators of recovery, the current technical trends and external economic factors present significant challenges for D.R. Horton Inc.
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.)