DailyIQ
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Sector:Consumer CyclicalAll sectors
Last updated 6 minutes ago

DHI·D.R. Horton, Inc.

$.
+. (+.%)
After Hours
High
$151.34
Open
$146.46
Market Cap
42.28B
52W High
$184.55
Low
$146.46
P. Close
$150.98
P/E
13.85
52W Low
$131.75
Fwd P/E
12.84
DailyIQ Est.
$164.84
Technical Score (1D)
59
BUY
News Sentiment
43
BEARISH
Wells Fargo has cut DHI’s price target to $155 from $170, citing rising construction costs and a slowdown in home sales, which signals a more cautious valuation outlook for the next 1–10 trading days. The downgrade implies that earnings growth may be pressured, potentially tempering investor enthusiasm for the stock. Traders should monitor DHI’s upcoming earnings release for guidance on revenue growth and margin pressure, as the company’s ability to manage costs will be critical. Meanwhile, Polymarket odds indicate a 20 % chance of a surprise Fed rate hike, which could increase volatility for DHI and peers as higher rates may dampen housing demand. DHI recently completed a sizable share repurchase program and reaffirmed its cash dividend, a move that could support the stock if investors view the buyback as a sign of confidence in capital allocation. However, the company’s Q3 earnings beat was offset by a cut in full‑year guidance due to softer demand, implying that short‑term performance may not translate into long‑term upside. Analysts have upgraded DHI from sell to hold, citing improved execution that offsets weak demand, which may reassure investors about operational resilience. Despite a reasonable valuation relative to peers, market sentiment remains mixed, and lower guidance and margin pressure could erode profitability if affordability constraints persist. Investors should watch for any revisions to the full‑year sales guidance, changes in construction pipeline data, and Fed statements in the coming days to gauge the trajectory of DHI’s valuation.
Earnings Summary
D.R. Horton, Inc. is a leading U.S. homebuilder that acquires land, develops residential communities, and constructs a range of single‑family homes while also offering mortgage financing, title services, and rental property development, creating a vertically integrated model that serves 36 states and 126 markets; the company operates within the Consumer Cyclical sector and the Residential Construction industry. In the most recent quarters, DHI reported revenue of $7.613 billion in Q4 2024, up 1.6% from the prior quarter, and an EPS of $2.61, beating the $2.372 estimate; Q1 2025 revenue rose modestly to $7.734 billion but EPS fell to $2.58, missing the $2.65011 forecast; Q2 2025 revenue surged to $9.226 billion, a 19.8% jump, and EPS climbed to $3.36, surpassing the $2.8746 estimate; Q3 2025 revenue increased to $9.678 billion, yet EPS dipped to $3.04, below the $3.2934 expectation; Q2 2026 revenue contracted to $7.558 billion, a 2.4% decline from Q3 2025, and EPS fell to $2.24, missing the $2.80065 estimate; Q3 2026 revenue rebounded to $9.227 billion, a 22.7% rise over Q2 2026, but EPS of $3.20 still missed the $3.38272 forecast, indicating volatile earnings performance amid fluctuating revenue growth. Historically, the company has shown a pattern of accelerating revenue growth in the first half of 2025 followed by a slowdown and a sharp revenue drop in Q2 2026, with EPS generally lagging behind revenue gains; the recent two quarters have both missed EPS estimates despite strong revenue, underscoring a recurring trend of revenue expansion coupled with earnings volatility. Recent news highlights a sizable share‑buyback program, a dividend hike, and record backlog growth that reinforced the Q2 earnings beat, while guidance cuts for FY 2026 and a 20% chance of a Fed rate hike signal potential affordability pressures and market sensitivity to mortgage rates; these developments suggest that DHI’s valuation may be influenced by macro‑economic policy and demand dynamics. Investors should watch for the Fed’s policy decision, mortgage‑rate movements, and the next earnings release for any revisions to guidance, changes in buyback pace or dividend policy, and updates on inventory discipline, as these factors will likely shape the company’s short‑term valuation trajectory.

EPS

EstBeatMiss
$2.07$2.44$2.81$3.18$3.55Q1'25Q2'25Q3'25Q2'26Q3'26Q4'26
QtrEstActual+/−
Q4'26$3.04 - -
Q3'26$3.38$3.20-5.4%
Q2'26$2.80$2.24-20.0%
Q3'25$3.29$3.04-7.7%
Q2'25$2.87$3.36+16.9%
Q1'25$2.65$2.58-2.6%

Revenue

EstBeatMiss
$7.2B$7.9B$8.6B$9.3B$10.0BQ1'25Q2'25Q3'25Q2'26Q3'26Q4'26
QtrEstActual+/−
Q4'26$9.2B - -
Q3'26$9.3B$9.2B-0.5%
Q2'26$9.0B$7.6B-16.1%
Q3'25 - $9.7B -
Q2'25 - $9.2B -
Q1'25 - $7.7B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

DHI Stock Snapshot

DHI is currently trading at $151.08, giving D.R. Horton, Inc. a market cap of 42.28B and a P/E ratio of 13.8. Today's range spans $146.46–$151.34, with shares opening at $146.46 and moving up $0.10 (0.1%) from the prior close. DailyIQ's technical score sits at 59/100 (HOLD) with a news sentiment reading of 43/100.

Over the past year DHI has traded between $131.75 and $184.55 - the current price is +14.7% off the 52-week low and -18.1% from the high. 27 analysts cover the stock with a Hold consensus and a mean 12-month target of $162.92 (range $125.00–$206.00), implying upside of +7.8%.

The setup for D.R. Horton, Inc. (DHI) is neither bullish nor bearish - it's patient. Score: 59/100 (HOLD). Sentiment: neutral (43/100). Price: $151.08 (in the lower half of its 52-week range in $131.75–$184.55). The current P/E ratio stands at 13.8. A large-cap with 42.28B in Consumer Cyclical market cap in a neutral technical phase is exactly where position-sizing decisions get made before the next trend emerges.

Portfolio construction in Consumer Cyclical often uses large-cap names like DHI as tactical swing positions during neutral phases: cheap enough to overweight, liquid enough to exit quickly, and large enough to provide meaningful sector beta. The current 59/100 (HOLD) at $151.08 (in the lower half of its 52-week range) and neutral sentiment (43/100) frame the position as a catalyst play within the $131.75–$184.55 annual range rather than a directional bet.