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Bear of the Day: D.R. Horton (DHI)

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Housing has been one of the main benefactors of the inflationary surge. There was a perfect storm which sent parts of the country absolutely through the roof. Now, with interest rates on the rise, some areas of the country are beginning to feel the pinch. The good news for many is that they locked in very low rates and are in a home they can stay in forever. The bad news is, it could make it tough for new buyers entering the market.

Already, we are seeing earnings estimates come down for some of the home builders. That is why today’s Bear of the Day is DR Horton (DHI - Free Report) . D.R. Horton, Inc., based in Texas, is one of the leading national homebuilders, primarily engaged in the construction and sale of single-family houses both in the entry-level and move-up markets. D.R. Horton’s operations are spread across 106 markets in 33 states in the East, Midwest, Southeast, South Central, Southwest and West regions of the United States. Its houses are sold under the brand names D.R. Horton - America’s Builder, Emerald Homes, Express Homes and Freedom Homes.

DR Horton is currently a Zacks Rank #5 (Strong Sell) in the Building Products – Home Builders industry which ranks in the Bottom 6% of our Zacks Industry Rank. The reason for the unfavorable rank is that seven analysts have cut their estimates for the current year while four have done so for next year. The impact has cut our Zacks Consensus Estimate for the current year from $13.42 to $9.33 while next year’s number is off from $13.91 to $9.54.

There are other stocks in the Home Builders industry which are still in the good graces of our Zacks Rank. There is Zacks Rank #2 (Buy) Tri Ponte Homes (TPH - Free Report) . Also, several stocks are Zacks Rank #3 (Hold) stocks including Dream Finders Homes (DFH - Free Report) .

In-Depth Zacks Research for the Tickers Above

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D.R. Horton, Inc. (DHI) - free report >>

Tri Pointe Homes Inc. (TPH) - free report >>

Dream Finders Homes, Inc. (DFH) - free report >>

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