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NYSE:DHI
This summary was created by AI, based on 2 opinions in the last 12 months.
Experts have mixed views on D R Horton Inc. (DHI-N), highlighting potential shifts in the homebuilding market. One expert notes that while the overall sentiment around homebuilders has been disappointing, upcoming legislative changes, such as allowing 401K withdrawals for home purchases, could provide a much-needed boost for the sector. However, another analyst expresses concerns regarding the stock's technical performance, specifically the cup-and-handle pattern that seems to have failed. The downward trend in the stock price, coupled with signals from the Federal Reserve suggesting a pause in interest rate cuts, could further impact market confidence. Investors are advised to be cautious as the stock appears to be trending lower, potentially reaching levels between $120 and $130 if the trend continues.
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.)