D.R. Horton

DHI

Market cap $46.4B

D.R. Horton (DHI) reported earnings 30 days ago. What's next for the stock?

D.R. Horton (DHI) reached $156.76 at the closing of the latest trading day, reflecting a +1.44% change compared to its last close.

The housing market is still in rough shape, impacting performance for all companies in the sector—from homebuilders to home improvement companies. However, it may be on track for a recovery, as easing interest rates and home prices have triggered a slow trickle of improvement that is expected to strengthen in 2026.

Builders are getting a big boost from rising expectations of a rate cut next month.

Construction stock D.R. Horton Inc (NYSE:DHI) has pulled back to several layers of support on the charts, including its 200-day moving average and year-to-date anchored volume-weighted average price (AVWAP). The stock's year-to-date breakeven level lingers just below as well, along with a 61.8% Fibonacci retracement from its 2025 lows to highs.

D.R. Horton announced that it will work with a Portland, Oregon-based startup called Prophetic. Prophetic has developed an AI-native platform for land acquisition and development analysis.

D.R. Horton is well positioned for strong revenue recovery as rate cuts boost affordability and demand and the company has increased community count meaningfully to benefit from any upside. Lower incentives, cost savings, and operating leverage should drive margin improvement in FY26 and beyond. Valuation is attractive.

Revenue and profits both fell in the home builder's fourth-quarter earnings report. Some Wall Street analysts lowered their expectations for the stock.

I track a universe of 50 high-quality dividend growth stocks to identify attractive investment opportunities based on valuation and future return potential. Recent performance diverged from the S&P 500, with the universe returning +9.71% YTD versus SPY's +17.02% and SCHD's -1.20%. Currently, 26 stocks offer estimated future returns of at least 10%, with 19 appearing undervalued using my Free Cash Flow model.

Two analysts cut their price targets on the shares. This followed the release of the homebuilder's final quarter of fiscal 2025 results.