How Is D.R. Horton's Stock Performance Compared to Other Home Construction Stocks?

Based in Arlington, Texas, D.R. Horton, Inc. (DHI) is a prominent home construction company valued at $45.91 billion by market cap. As one of the largest homebuilders in the U.S., D.R. Horton specializes in constructing and selling single-family homes, townhomes, and condominiums. The company operates across various regions in the U.S., providing a wide range of homes designed to meet the needs of different buyers, from entry-level to luxury homes. In addition to home construction, D.R. Horton offers mortgage financing and title services to facilitate its customers' home-buying process.

Companies valued at $10 billion or more are generally considered "large-cap" stocks, and D.R. Horton fits this criterion perfectly, signifying its substantial size, stability, and influence in the homebuilding industry. As one of the largest homebuilders in the U.S., D.R. Horton’s extensive market presence and industry expertise make it a trusted partner for individuals and families seeking quality and affordable housing solutions. 

DHI shares are trading 15.9% below their 52-week high of $165.75, which they hit on Apr. 1. The stock has declined 12.4% over the past three months, underperforming the iShares U.S. Home Construction ETF’s (ITB) 8.3% decline over the same time frame.

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In the long term, DHI declined 8.6% YTD. However, the shares have returned 17.4% over the past 52 weeks. In comparison, the ITB gained 1.2% in 2024 and rallied 26.3% over the past year.

To confirm the recent bearish price trend, DHI has been trading below its 50-day moving average since mid-May. However, it has been trading above its 200-day moving average since early November 2023, indicating a long-term bullish price trend.

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D.R. Horton reported Q2 earnings on Apr. 18. The stock gained marginally on the earnings release day. However, the stock lost 2.5% the following day. The company reported a profit of $1.17 billion, equating to $3.52 per share, surpassing Wall Street expectations. The homebuilder company also exceeded revenue forecasts, posting $9.11 billion compared to the expected $8.27 billion. Looking ahead, D.R. Horton projects full-year revenue between $36.7 billion and $37.7 billion.

Despite its recent underperformance compared to ITB, analysts are moderately optimistic about DHI's prospects. The stock has a consensus rating of "Moderate Buy" from 20 analysts in coverage. The mean price target of $166.44 reflects a 19.4% premium over current levels.

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On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.