D.R. Horton Stock Soars Ahead of Q1 Earnings: Retail’s Optimistic

Shares of D.R. Horton Inc. ($DHI) rose nearly 8% last week, reaching a one-month high as of Friday, ahead of the home builder’s first-quarter earnings. Retail sentiment remained optimistic.

Wall Street analysts expect the company to post earnings per share of $2.35 on estimated revenues of $7.01 billion, according to Stocktwits data. The company is set to report earnings on Tuesday before the market opens.

D.R. Horton beat EPS estimates thrice out of the last four quarters but missed revenue estimates twice in the same time period, according to Stocktwits.

Sentiment on Stocktwits continues to be ‘bullish’ compared to a week ago, albeit slightly higher. Message volumes rose to ‘extremely high’ compared to ‘high.’

DHI sentiment meter and message volumes on Jan 21

Last week, Barclays lowered the price target on D.R. Horton to $150 from $170 with an ‘Equal Weight’ rating, The Fly.com reported. According to the firm, building products are currently preferred over homebuilders, with “subdued” earnings expected across both subsectors. The report noted that building product stocks have seen “greater dislocations versus fundamentals, leaving better entry points.”

D.R. Horton constructs and sells both single-family and multi-family rental properties with operations in 125 markets in 36 states across the U.S.

Wall Street analysts have a median price target of $173.00 on the company’s stock, according to Finchat. Among 16 analysts covered, 10 have a ‘Hold;’ seven have a ‘buy’ and two have an ‘underperform’ rating.

D.R. Horton stock is up 5.6% year-to-date.

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