Why D.R. Horton Stock Popped Today
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Why D.R. Horton Stock Popped Today

Why This Matters

Business is bad for D.R. Horton. It may be time to buy.

July 22, 2025
12:04 PM
3 min read
AI Enhanced

The analysis indicates that What caught my attention is Is bad for D. What the data shows is may be time to buy (noteworthy indeed), in today's market environment. On the other hand, Horton (DHI 16.

Moreover, 68%), one of the nation's biggest builders, soared 14. 4% through 11:40 a, in this volatile climate.

Additionally, ET Tuesday after crushing on its third-quarter earnings report (an important development). Analysts forecast $2. 90 per in fit on $8.

Nevertheless, Additionally, 8 billion in sales for Horton in its fiscal third quarter (an important development). Horton earned $3. Nevertheless, 36 per instead, and did $9. Nevertheless, 2 billion in.

Image source: Getty Images. Horton Q3 earnings Not all the news was good, in today's market environment. Conversely, Horton beat earnings soundly, but its $3 (noteworthy indeed).

36 per fit still declined 18% versus Q3 2024, given the current landscape. However, Net fit -- as opposed to fit per -- declined an even more dramatic 24%.

Sales were down only 7%, given the current landscape. Reading between the lines, what does this tell investors. Well, two things pop out: The fact that fits declined more steeply than revenue means D.

Horton's net fit margin contracted in the quarter.

Moreover, In contrast, Conversely, the fact that earnings per declined less steeply than net fit suggests Horton spent a bit of time (and money) buying back s, to concentrate fits among what s remained, in today's financial world.

Confirming this hunch, Horton noted that its count fell by 9% year over year. Horton stock a buy. Still, isn't great for the builder right now.

Executive Chairman David Auld noted that "new demand continues to be impacted by affordability constraints and cautious consumer sentiment," forcing Horton to discount prices and offer "sales incentives" to keep moving inventory.

Management's sales guidance for the year -- $33. On the other hand, 7 billion to $34.

Additionally, Meanwhile, 2 billion -- is also slightly below analyst forecasts, which implies the situation bably isn't imving, or at least not yet, given the current landscape.

Still, at a P/E ratio of barely 10 times and paying a 1, in this volatile climate. Furthermore, 2% dividend, D. Horton doesn't look overpriced to me, given the current landscape.

On the other hand, I'd lean more toward buy than sell on this one.

Furthermore, Moreover, The Author Rich Smith is a contributing Defense Analyst at The Motley Fool, covering publicly traded and emerging in defense, space, and aerospace.

Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D.

He holds a B, amid market uncertainty. In International Relations from the College of William & Mary in Virginia, a J.

From the University of Baltimore, and language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation.

Moreover, Fun fact: Canada's The Globe and Mail him in an article titled, "Ex-lawyer one of the best stock pickers since 2009 (noteworthy indeed).

" TMFDitty X @RichSmithFool Rich Smith has no position in any of the stocks mentioned. This analysis suggests that Motley Fool has positions in and recommends D.

The Motley Fool has a disclosure policy, amid market uncertainty.

FinancialBooklet Analysis

AI-powered insights based on this specific article

Key Insights

  • The Federal Reserve's actions could influence market sentiment across sectors
  • Earnings performance can signal broader sector health and future investment opportunities
  • Financial sector news can impact lending conditions and capital availability for businesses

Questions to Consider

  • How might the Fed's policy stance affect borrowing costs and economic growth?
  • Could this earnings performance indicate broader sector trends or company-specific factors?
  • Could this financial sector news affect lending conditions and capital availability?

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