U.S. Markets closed
  • S&P Futures

    3,596.75
    +20.75 (+0.58%)
     
  • Dow Futures

    29,750.00
    +204.00 (+0.69%)
     
  • Nasdaq Futures

    11,957.75
    +52.50 (+0.44%)
     
  • Russell 2000 Futures

    1,834.20
    +17.10 (+0.94%)
     
  • Crude Oil

    43.15
    +0.09 (+0.21%)
     
  • Gold

    1,832.90
    -4.90 (-0.27%)
     
  • Silver

    23.58
    -0.05 (-0.20%)
     
  • EUR/USD

    1.1847
    +0.0001 (+0.0118%)
     
  • 10-Yr Bond

    0.8570
    +0.0280 (+3.38%)
     
  • Vix

    22.66
    -1.04 (-4.39%)
     
  • GBP/USD

    1.3330
    +0.0008 (+0.0613%)
     
  • USD/JPY

    104.5410
    +0.0530 (+0.0507%)
     
  • BTC-USD

    18,429.49
    +169.75 (+0.93%)
     
  • CMC Crypto 200

    368.42
    +6.99 (+1.93%)
     
  • FTSE 100

    6,333.84
    -17.61 (-0.28%)
     
  • Nikkei 225

    26,186.58
    +659.21 (+2.58%)
     

Bull of the Day: D.R. Horton (DHI)

David Bartosiak
·3 min read

There are plenty of tailwinds for stocks right now. You read that right, I said tailwinds. Sure, the COVID-related shutdowns have put a huge damper on things. The market is forward-looking. It realizes that we will get out of this mess eventually. It’s the reason why so many stocks are flying high. There are some areas of the market that have been surprising though. Among them are the home builders. I didn’t realize just how good things have been.

It makes sense when you take it in the context of record low mortgage rates combined with a mass exodus from cities across the nation. Folks are packing it up for the suburbs, and have been leaving higher tax states for lower tax states since the tax code was changed.

Today’s Bull of the Day is a company benefiting from all these tailwinds. I’m talking about Zacks Rank #1 (Strong Buy) D.R. Horton (DHI). D.R. Horton, Inc. operates as a homebuilding company in East, Midwest, Southeast, South Central, Southwest, and West regions in the United States. It engages in the acquisition and development of land; and construction and sale of homes in 20 states and 51 markets in the United States under the names of D.R. Horton, America's Builder, Express Homes, Emerald Homes, and Freedom Homes. The company constructs and sells single-family detached homes; and attached homes, such as town homes, duplexes, and triplexes. It is also involved in the origination and sale of mortgages; and provision of title insurance policies, and examination and closing services, as well as engages in the residential lot development business. 

D.R. Horton, Inc. Price and Consensus

D.R. Horton, Inc. Price and Consensus
D.R. Horton, Inc. Price and Consensus

D.R. Horton, Inc. price-consensus-chart | D.R. Horton, Inc. Quote

The reason for the favorable Zacks Rank lies in the series of earnings estimate revisions coming from analysts. Over the last 60 days, thirteen analysts have increased their earnings estimates for the current year while eleven analysts have increased estimates for next year. The bullish sentiment on Wall Street has increased the current year Zacks Consensus Estimate from $4.54 to $5.27, while next year’s number is up from $4.30 to $5.55.

That has helped underpin a rally in the stock from $29 in March to over $67 where it closed today. That’s well north of the previous high earlier his year in the $61 handle.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.

Click here for the 6 trades >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
D.R. Horton, Inc. (DHI) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research