D.R. Horton

DHI

Market cap $39B

One explanation for rising mortgage applications is that many people are tired of waiting for lower rates. Many homebuilders may prosper -- but it may take a while.

Construction spending rebounded in March, boosting prospects for homebuilders DHI and LGIH as demand for single-family homes stays strong.

On May 12, the April reading of the Consumer Price Index (CPI) will be released. Polymarket predicts the number is most likely to come in at 3.7% or 3.8%.

Alex Barron believes the bottom of the housing market is here. He says the "fear factor" from the Iran war has faded at this point as the summer home selling season ramps up.

Mortgage rates have risen over the last month as investors bet that the extended closure of the Strait of Hormuz could lead to inflation and higher interest rates. Homebuilders have reported declining sales in the first quarter.

Homebuilders have been going through a rough patch as of late. Across top homebuilding stocks, analysts expected revenues and earnings to fall considerably in Q1 2026, and this is exactly what happened.

Market volatility has a way of scattering investors—but it doesn't destroy money. It moves it.

The picture emerging from the Q1 earnings season is of continued strength and momentum, with companies not only comfortably beating consensus estimates but also providing a reassuring read on the economy despite elevated energy costs and other risks.

The picture emerging from the Q1 earnings season is of continued strength and momentum, with companies not only comfortably beating consensus estimates but also providing a reassuring read on the economy despite elevated energy costs and other risks.

D.R. Horton's FQ2'26 results demonstrate resilient sales and margins, with affordable pricing/buydown financing and strong first-time buyer demand offsetting high mortgage headwinds. These reasons are also why their integrated land development, construction, and mortgage financing capabilities enable numerous growth levers, sustaining sales and profitability. Given the overly done rally, DHI now trades at a premium to historical averages while pulling forward part of their upside potential to my LTPT of $232.