D.R. Horton Positioned to Address 3-4 Million Housing Shortage, Long-Term Growth Prospects Positive
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
- Housing Shortage Opportunity: Goldman Sachs estimates that the U.S. needs an additional 3 to 4 million homes to balance supply and demand, and D.R. Horton, with its presence in 126 markets and 24 years of industry leadership, is uniquely positioned to address this issue, driving long-term growth prospects.
- Land Resource Advantage: By the end of 2025, D.R. Horton controlled 445,000 lots and owned 145,500 lots, far exceeding other top ten homebuilders, ensuring its competitive edge in the market and sustainability of future projects.
- Strong Financial Performance: D.R. Horton's return on assets and return on equity have consistently outperformed the S&P 500 median over the past ten years, while its total returns have surpassed the S&P 500 over the last three, five, and ten-year periods, indicating robust financial health.
- Increased Shareholder Returns: Over the past five years, D.R. Horton has reduced its outstanding shares by 20% and increased its dividend by 125%, reflecting successful management strategies and enhancing investor confidence.
Analyst Views on DHI
Wall Street analysts forecast DHI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DHI is 157.00 USD with a low forecast of 117.00 USD and a high forecast of 191.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
3 Buy
6 Hold
2 Sell
Hold
Current: 148.590
Low
117.00
Averages
157.00
High
191.00
Current: 148.590
Low
117.00
Averages
157.00
High
191.00
About DHI
D.R. Horton, Inc. is a homebuilding company. The Company constructs and sells homes through its operating divisions in 125 markets across 36 states. The Company’s segments include Homebuilding, Rental, Forestar, Financial Services, and Other. The Homebuilding divisions are primarily engaged in the acquisition and development of land and the construction and sale of residential homes. The Company’s rental segment consists of single-family and multifamily rental operations. The single-family rental operations construct and lease single-family homes within a community and then generally market each community for a bulk sale of rental homes. The Forestar segment is a residential lot development company with operations in 59 markets across 24 states. The Financial services segment provides mortgage financing and title agency services to homebuyers in many of the Company’s homebuilding markets. It also conducts insurance-related operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
