Do Wall Street Analysts Like D.R. Horton Stock?
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Founded in 1978 and headquartered in Arlington, Texas, D.R. Horton, Inc. (DHI) is the largest homebuilder in the U.S. by volume. With a market cap of $40.7 billion, D.R. Horton operates across multiple segments, offering a diverse range of homes under its core brands, including D.R. Horton, Emerald Homes, Express Homes, and Freedom Homes. The company delivers high-quality, affordable, innovative housing solutions nationwide, leveraging its extensive land portfolio, efficient construction practices, and commitment to customer satisfaction.
Shares of D.R. Horton have underperformed the broader market over the past 52 weeks. DHI stock has declined 10.1% over the past year and 6.9% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 20.7% gains over the past year and 3.1% returns in 2025.
Zooming in further, DHI has underperformed the SPDR S&P Homebuilders ETF’s (XHB) 7.3% gains over the past year and 1.5% returns in 2025.
D.R. Horton's shares dropped 2.7% following its Q1 earnings release on Jan. 21. The company reported revenue of $7.61 billion, exceeding analyst estimates of $7.13 billion but marking a 1.5% year-over-year decline. Adjusted EPS declined 7.4% annually to $2.61 but beat the consensus estimate of $2.40.
For the fiscal year ending September 2025, analysts anticipate a 9.1% year-over-year decline in DHI’s EPS to $13.04. However, looking ahead, fiscal 2026 EPS is expected to be $14.44, up 10.7% annually. Moreover, the company’s earnings surprise history is mixed. It surpassed analysts’ bottom-line estimates in three of the past four quarters while missing on one other occasion.
Among the 19 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, nine “Holds,” and two “Strong Sells.”
This configuration is less bullish than three months ago when 10 analysts recommended a “Strong Buy” rating.
On Jan. 22, Evercore ISI reduced DHI’s price target from $212 to $204 while maintaining an “Outperform” rating.
DHI’s mean price target of $171.98 represents a premium of 32.1% to current price levels. The Street-high target of $220 suggests a potential upside of 69%.
On the date of publication, Rashmi Kumari 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.