Key Highlights:
- D.R. Horton (DHI, Financial) achieves robust third-quarter earnings with significant home closures.
- Analysts present a mixed outlook with price targets indicating potential downsides.
- Current market price slightly exceeds the estimated GF Value, suggesting cautious investment.
D.R. Horton Inc. (NYSE: DHI) showcased a solid financial performance in the third quarter with earnings of $3.36 per share. The results were bolstered by a pretax income of $1.4 billion amidst a revenue stream of $9.2 billion. The homebuilder managed to close an impressive 23,160 homes, surpassing expectations. While there has been a minor uptick in cancellation rates, now at 17%, buyer financial commitment appears robust.
Wall Street Analysts' Predictions
Wall Street analysts have set their sights on varied future price targets for D.R. Horton Inc. (DHI, Financial). Among 15 industry experts, the consensus on the one-year target averages $147.27, with projections ranging from a high of $180.00 to a low of $105.00. This average target forecasts a modest downside of 1.91% from the current trading price of $150.14. For a more detailed breakdown of these estimates, visit the D.R. Horton Inc (DHI) Forecast page.
The sentiment among 22 brokerage firms places D.R. Horton Inc. (DHI, Financial) at an average recommendation of 2.6, suggesting a "Hold" position. The rating scale ranges from 1 (Strong Buy) to 5 (Sell), indicating a cautious stance among analysts.
GF Value and Investment Outlook
According to GuruFocus estimates, the calculated GF Value for D.R. Horton Inc. (DHI, Financial) over the next year is $130.19, reflecting a potential downside of 13.29% from the current market price of $150.14. The GF Value metric represents GuruFocus' calculated fair value for the stock, taking into consideration historical trading multiples, previous business growth, and forecasted performance. For further insights, please visit the D.R. Horton Inc (DHI) Summary page.
