
D.R. Horton (DHI) Stock Forecast & Price Target
D.R. Horton (DHI) Analyst Ratings
Bulls say
D.R. Horton is poised for significant growth, driven by its strong local market share that allows it to effectively navigate land and labor constraints more efficiently than smaller competitors. The company’s first-quarter earnings per share of $2.61 exceeded expectations due to impressive delivery volumes and resilient gross margins, which contribute to an anticipated return on equity in the mid-teens and consistent earnings growth. Additionally, with an increased buyback guidance for FY'25 and an optimistic gross margin estimate of 21.6%, D.R. Horton is well-positioned for a solid performance in the coming periods.
Bears say
The financial outlook for D.R. Horton suggests challenges ahead, with estimated fiscal year 2025 earnings per share (EPS) projected to decline by 1% to $12.29, driven by weak order numbers and a disappointing second-quarter profit margin guidance. The company anticipates a consolidated profit before interest (PTI) margin decrease of 260-310 basis points year-over-year, which is indicative of potential pressures on overall financial performance. Additionally, lower order expectations, with orders rising only 3% year-over-year, coupled with an anticipated softening in pricing, contribute to concerns regarding future profitability and may lead to a contraction in valuation multiples.
This aggregate rating is based on analysts' research of D.R. Horton and is not a guaranteed prediction by Public.com or investment advice.
D.R. Horton (DHI) Analyst Forecast & Price Prediction
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