DHI Price Prediction Next Week
Based on the provided data and recent market developments, here's a comprehensive analysis for DHI's price prediction for next week:
Technical Analysis
- Current price: $125.75 with a -2.10% decline in the last session
- Price has formed a bearish pattern with lower highs and lower lows over the past week
- Key support level at $124.96 (recent low) and resistance at $129.76 (recent high)
Fundamental Catalysts
- Rising cost pressures: Lot costs increased 10% YoY and expected to continue rising at mid-to-high single digits
- Housing market headwinds: Higher mortgage rates and increased supply creating pricing pressure
- Rental segment concerns: No new investments in rental segment, which accounts for 11% of book value with expected low single-digit ROE in 2025
News Sentiment
- Recent tariff concerns: Trump administration's potential 25% tariffs on lumber and construction materials creating uncertainty
- Housing starts declined more than expected, though building permits showed slight improvement
- BofA Securities downgraded DHI from Buy to Neutral with price target reduced from $160 to $150
Price Prediction for Next Week
Target Ranges:
- Bearish scenario (60% probability): $122-124
- Neutral scenario (30% probability): $124-127
- Bullish scenario (10% probability): $127-130
Recommendation: SELL
Rationale:
- Technical indicators showing bearish momentum
- Multiple fundamental headwinds including cost inflation and housing market pressures
- Negative analyst sentiment with recent downgrades
- Tariff uncertainties creating additional market pressure
Price target: $123.50 by end of next week, representing approximately 2% downside from current levels.
DHI Similar Chart Price Prediction
The price of DHI is predicted to go up 8.08%, based on the high correlation periods with EHC. The similarity of these two price pattern on the periods is 97.76%.
DHI
EHC
Up: 8.08%Similarity: 97.76%
DHI Revenue Forecast
DHI EPS Forecast
DHI FAQs
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DHI VS S&P500
The U.S. housing market is undersupplied. This supply/demand imbalance will take years to address and should support homebuilder pricing power.
There is significant long-term demand for entry-level housing as the millennial generation forms households. D.R. Horton's Express Homes brand is positioned to capitalize on this underserved market.
D.R. Horton's strategic relationship with publicly traded land developer Forestar and its growing property rental businesses should help fuel future growth.
DHI Analyst's Forecast
Matthew Bouley
Barclays
Hold
2025-01-22
Price Target
$150 → $145
Downside
-1.31%
Barclays lowered the firm's price target on D.R. Horton to $150 from $170 and keeps an Equal Weight rating on the shares. The firm prefers building products to homebuilders in Q4. Investor expectations are "subdued" across both subsectors into earnings, the analyst tells investors in a research note. The firm says that as both subsectors declined over the past six weeks, building products stocks have seen greater dislocations versus fundamentals, leaving better entry points.
Matthew Bouley
Barclays
Hold
2025-01-16
Price Target
$170 → $150
Upside
+2.32%
John Lovallo
UBS
Strong Buy
2025-01-08
Price Target
$214 → $203
Upside
+45.1%
