D.R. Horton presents a restrained investment case rather than a clean buy signal, with a Zacks Rank #3 (Hold) reflecting mixed signals. The homebuilder trades at 12.3 times forward earnings, above the Zacks sub-industry multiple of 10.9 but well below the broader sector and S&P 500, while its $151 price target implies limited upside from the recent $143.92 stock price. The company maintains strong liquidity, ending June 30, 2026 with $6.1 billion in consolidated liquidity including $2.13 billion of cash and equivalents, and returned $2.2 billion in share repurchases and $388.3 million in dividends over the first nine months of fiscal 2026. However, third-quarter earnings declined 4.8% year over year, home sales gross margin slipped to 20.7% from 21.8%, and the cancellation rate rose to 20% from 17%, while management lowered fiscal 2026 revenue guidance to $32.5-$33 billion and reduced homebuilding closings outlook to 83,800-84,300 homes. The stock carries a VGM Score of A, with a Value Score of B and Momentum Score of A, but a Growth Score of C, suggesting appeal for investors prioritizing balance-sheet strength and shareholder returns over near-term growth.
DR Horton IncThird-quarter earnings declined 4.8% YoY, gross margin slipped, cancellation rate rose, and management lowered fiscal 2026 revenue and closings guidance.
Lennar Corporation
PulteGroup Inc