Is D.R. Horton Stock Underperforming the Dow?

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Is D.R. Horton Stock Underperforming the Dow?

With a market cap of $41.5 billion, D.R. Horton, Inc. (DHI) focuses on acquiring and developing land, as well as constructing and selling residential homes across 126 markets in 36 states. Its housing portfolio includes single-family detached homes and attached housing such as townhomes and duplexes. 

Companies valued at $10 billion or more are generally considered "large-cap" stocks, and D.R. Horton fits this criterion perfectly. In addition to homebuilding, it offers mortgage financing, title services, rental property development, insurance-related operations, and manages various real estate and water-related assets.

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Shares of the homebuilder have fallen 21.1% from its 52-week high of $184.54DHI stock has decreased 2.8% over the past three months, lagging behind the broader Dow Jones Industrials Average's ($DOWI) 7.6% rise during the same time frame. 

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In the longer term, shares of D.R. Horton have soared 18.7% over the past 52 weeks, underperforming the DOWI's 21.9% return over the same time frame. Moreover, DHI stock is up 1.2% on a YTD basis, compared to DOWI's 7.3% gain.

Despite few fluctuations, the stock has been trading above its 50-day and 200-day moving averages since last year.

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Shares of D.R. Horton rose 5.8% on Apr. 21 after the company reported fiscal Q2 2026 EPS of $2.24, exceeding analyst expectations, while revenue of $7.6 billion met consensus estimates. The company also delivered solid operating performance, with net sales orders increasing 11% year-over-year, homes closed rising to 19,486, and unsold completed homes declining 35% from a year earlier. 

In addition, D.R. Horton maintained its fiscal 2026 outlook, projecting $33.5 billion to $34.5 billion in revenue, at least $3 billion in operating cash flow, approximately $2.5 billion in share repurchases, and about $500 million in dividend payments, despite ongoing affordability challenges and cautious homebuyer sentiment.

In comparison, rival Lennar Corporation (LEN) has lagged behind DHI stock. LEN stock has dipped 11.9% on a YTD basis and 17.7% over the past 52 weeks. 

Due to the stock's underperformance relative to the Dow, analysts remain cautious about its prospects. DHI stock has a consensus rating of "Hold" from the 21 analysts covering the stock, and the mean price target of $167.60 suggests a premium of 14.5% to current levels.


On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

 

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