2024-04-16 03:45:17 ET
Summary
- D.R. Horton has enjoyed an amazing run since we initiated our bullish view with a "Strong Buy" rating back in October 2022.
- Since then, DHI has gained by 105.9%, far exceeding the 36.1% gain on the S&P 500 Index and the 79.0% gain on the SPDR S&P Homebuilders ETF.
- The underlying factors driving the acute housing shortage remain largely unchanged, and we see little evidence to suggest that the relevant authorities are making any progress towards solving the problem.
- DHI's TTM P/E multiple of just 10.9x versus 27.5x on the S&P 500 Index not only presents an opportunity for investors to reduce risk by rotating out of tech-heavy exposure and into value, but we also think DHI provides much more upside potential.
- We reiterate our "Strong Buy" rating on DHI stock, and we see the recent dip as an attractive opportunity for investors to accumulate.
D.R. Horton ( DHI ) has enjoyed an amazing run since we initiated our bullish view with a "Strong Buy" rating way back in October 2022 . Since then, DHI has gained by 105.9% over 18 months, far exceeding the 36.1% gain on the S&P 500 Index ( SP500 ) and the 79.0% gain on the SPDR S&P Homebuilders ETF ( XHB ) over the same period. ...
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D.R. Horton: Housing Supply Shortage Unresolved, Leaving Ample Room For Alpha