Why D.R. Horton Stock Popped Today
Key Takeaways
Business is bad for D.R. Horton. It may be time to buy.
Article Overview
Quick insights and key information
3 min read
Estimated completion
investment
Article classification
July 22, 2025
12:04 PM
The Motley Fool
Original publisher
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)
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
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.
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