Arlington, Texas-based D.R. Horton, Inc. (DHI) is a prominent home construction company valued at $45.8 billion by market cap. As one of the largest homebuilders in the U.S., D.R. Horton specializes in constructing and selling single-family homes, townhomes, and condominiums.
Shares of the company have slightly underperformed the broader market over the past 52 weeks. DHI stock has increased 13.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 14%. However, shares of the company are up 9.9% on a YTD basis, surpassing the SPX’s marginal rise.
Focusing more closely, shares of the homebuilder have outpaced the State Street Consumer Discretionary Select Sector SPDR Fund’s (XLY) 3.6% return over the past 52 weeks and a marginal return in 2026.
On Jan. 20, D.R. Horton posted its fiscal 2026 first-quarter results, sparking a brief selloff that sent shares down 1.8% before a sharp rebound of 3.2% in the following session as investors reassessed the numbers. The homebuilder delivered a solid earnings beat, reporting $6.89 billion in consolidated revenue and EPS of $2.03, exceeding Wall Street expectations despite pressure from housing affordability challenges.
Strong cost discipline helped drive pre-tax income of roughly $798 million, while demand held up with net sales orders rising 3% to 18,300 homes worth $6.7 billion. Reinforcing confidence in its outlook, management reaffirmed full-year guidance for $33.5 billion to $35.0 billion in revenue and 86,000 to 88,000 home closings, signaling resilience amid a cautious housing market.
For the fiscal year ending in September 2026, analysts expect DHI’s EPS to drop 9% year-over-year to $11.53. The company's earnings surprise history is mixed. It beat the consensus estimates in two of the last four quarters while missing on two other occasions.
Among the 20 analysts covering the stock, the consensus rating is a “Hold.” That’s based on five “Strong Buy” ratings, 12 “Holds,” and three “Strong Sells.”
Analyst sentiment has cooled in recent weeks, with the stock now carrying a more cautious consensus compared to a month ago, when it enjoyed a stronger “Strong Buy” rating.
On Jan. 23, Argus Research analyst Christopher Graja reaffirmed a “Buy” rating on D.R. Horton and raised his price target from $175 to $185, a 5.7% increase. The upgrade reflects growing confidence in the company’s market performance and long-term growth prospects.
The mean price target of $161.57 represents a premium of 2.1% to DHI's current price. The Street-high price target of $193 suggests a 22% potential upside.
On the date of publication, Kritika Sarmah 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.
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