#1 - D.R. Horton (NYSE:DHI)
Homebuilder stocks are one of the obvious ways to invest in the housing market, and D.R. Horton Inc. (NYSE: DHI) is one of the top names for investors to watch. In 2023, the impact of rising producer costs ate into the company’s bottom line. However, in its first two quarters of fiscal year 2024, the company has posted year-over-year gains in earnings per share.
Not surprisingly, the company is showing year-over-year gains in both homes closed and home sales revenues. For some investors, this was foreshadowed by Warren Buffett, who started buying DHI stock in December 2023, to the surprise of some investors.
That may have seemed like an early call, but for value investors like Buffett, it’s better to be early than late. This is particularly true when a company generates significant cash flow from its homebuilding operations, even in a down market. One way that D.R. Horton uses that cash flow is to pay dividends, which have amounted to $5.4 billion in the last five years.
And since the company’s last earnings report, the D.R. Horton analyst ratings on MarketBeat show two analysts have increased their price targets far above the consensus price of around $158.
About D.R. Horton
D.R. Horton, Inc operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. It engages in the acquisition and development of land; and construction and sale of residential homes in 118 markets across 33 states under the names of D.R.
Read More - Current Price
- $183.73
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 10 Buy Ratings, 4 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $182.07 (0.9% Downside)
