Valued at a market capitalization of $42.8 billion, DR Horton, Inc. (DHI) is a leading residential construction company based in Arlington, Texas. It constructs a wide range of residential homes, including single-family homes, townhomes and duplexes, and also provides related services such as mortgage financing, title agency services and residential lot development. It is expected to announce its first quarter fiscal 2026 results before the market opens on Tuesday, January 20.
Ahead of that event, analysts expect this homebuilding company to post earnings of $1.98 per share, down 24.1% from the year-ago quarter’s earnings of $2.61 per share. The company has beaten Wall Street estimates in two of the last four quarters, while missing twice. In the fourth quarter, DHI’s EPS of $3.04 was 7.6% lower than expected.
For fiscal 2026, ending in September, analysts expect DHI to report earnings of $11.43 per share, down 1.2% from $11.57 per share in fiscal 2025. Still, its EPS is expected to increase 14.3% year over year to $13.06 in fiscal 2027.
Shares of DHI have gained 7.2% over the past 52 weeks, trailing the S&P 500 Index ($SPX)’s 16.5% return over the same period. However, it outpaced the State Street Consumer Discretionary Select Sector SPDR ETF’s (XLY) 6.8% gain over the same period.
Shares of DHI jumped 4.1% on Dec. 3, after BTIG initiated coverage on the company with a “Buy” rating and a price target of $186. The analysts’ positive view comes amid a generally favorable outlook for the U.S. housing market, with forecasts pointing to a gradual decline in mortgage rates, greater affordability as incomes rise, and limited housing supply, a combination that should keep demand strong and housing prices supported.
Wall Street analysts are moderately bullish on DHI’s stock, with an overall rating of “Moderate Buy.” Among the 20 analysts covering the stock, seven recommend “Strong Buy”, 11 indicate “Hold” and two suggest “Strong Sell”. The average price target for DHI is $164.27, indicating 11.8% upside potential from current levels.
As of the date of publication, Neharika Jain did not have (directly or indirectly) any position in any of the securities mentioned in this article. All information and data contained in this article are for informational purposes only. This article was originally published on Barchart.com
