With a market cap of $43.3 billion, D.R. Horton, Inc. (DHI) is a leading homebuilding company operating across 125 markets in 36 U.S. states. The company builds and sells a wide range of residential homes and provides related services, including mortgage financing, title insurance, and land development.
Shares of the Arlington, Texas-based company have underperformed the broader market over the past 52 weeks. DHI stock has declined 12.9% over this time frame, while the broader S&P 500 Index ($SPX) has increased 13.4%. Moreover, shares of the company are up 3.9% on a YTD basis, compared to SPX’s 14.3% rise.
Focusing more closely, shares of the homebuilder have lagged behind the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 12.5% return over the past 52 weeks.
Despite reporting better-than-expected Q4 2025 revenue of $9.68 billion, D.R. Horton’s shares fell 3.2% on Oct. 28 as its EPS of $3.04 missed analysts’ expectations, reflecting a 22% year-over-year decline. The company’s net income dropped 29% to $905.3 million, and homebuilding pre-tax income fell 30% to $1 billion, signaling margin pressure from higher sales incentives and affordability challenges.
For the fiscal year ending in September 2026, analysts expect DHI’s EPS to drop marginally year-over-year to $11.46. The company's earnings surprise history is mixed. It beat the consensus estimates in two of the last four quarters while missing on two other occasions.
Among the 20 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, 11 “Holds,” and two “Strong Sells.”
This configuration is slightly less bullish than three months ago, with eight “Strong Buy” ratings on the stock.
On Oct. 29, UBS raised its price target for D.R. Horton to $195 and maintained a “Buy” rating.
The mean price target of $164.38 represents a premium of 13.2% to DHI's current price. The Street-high price target of $220 suggests a 51.5% potential upside.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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