
D.R. Horton (DHI) Stock Forecast & Price Target
D.R. Horton (DHI) Analyst Ratings
Bulls say
D.R. Horton is positioned for growth due to its significant local market share, which enables the company to manage land and labor constraints more effectively than smaller competitors. The company anticipates sustainable return on equity in the mid-teens, driven by robust earnings growth and increasing gross margins, with estimates for fiscal year gross margin rising to 21.6%. Additionally, D.R. Horton has reported strong financial performance, with first quarter earnings per share surpassing expectations and a planned buyback increase, indicating confidence in future cash flows and company stability.
Bears say
D.R. Horton's projected earnings per share (EPS) for fiscal year 2025 have experienced a downward revision, now estimated at $12.29, reflecting a 1% decrease from prior estimates, attributed to weaker order volumes and a modest decline in profit margin guidance. The company's guidance for consolidated pre-tax income (PTI) margins in the second quarter indicates a significant year-over-year decline of 260-310 basis points, suggesting mounting pressures on profitability amid reduced demand. Additionally, a decline in orders, projected at a mere 3% increase year-over-year, alongside a decrease in lot deliveries and a challenging market backdrop, further underscores the ongoing risks to both revenue growth and margin stability for D.R. Horton.
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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