DHI

Discussion in 'Stocks' started by dealmaker, Jul 8, 2017.

  1. dealmaker

    dealmaker

    The Hot Stock: D.R. Horton Gains 3.8%
    A solid jobs report helped make DR Horton the best-performing stock in the S&P 500 today.
    By
    Ben Levisohn
    Updated July 7, 2017 5:00 p.m. ET


    D.R. Horton(DHI) soared to the top of theS&P 500today aftera better-than-expected U.S. payrolls reportshowed16,000 new construction jobs were added in June.

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    ILLUSTRATION:AGENCE FRANCE-PRESSE/GETTY IMAGES
    D.R. Horton climbed 3.8% to $35.79 today, while the S&P 500 advanced 0.6% to 2,425.18. Other home builders also rallied:PulteGroup(PHM) rose 2.2% to $24.94,KB Home(KBH) gained 2.7% to $24.06, andToll Brothers(TOL) rallied 3.1% to $40.41.

    KBW's Jade Rahmaninamed D.R. Horton a mid-year best idea:

    We view the DHI’s platform as best in class given its:
    • Broad geographic footprint with industry-leading market share in top homebuilding markets (Dallas, Houston, Atlanta, Phoenix, Austin, and numerous others).
    • Industry-leading operating margins (11% on a trailing-12-month basis) and a lean cost structure.
    • Strong balance sheet with financial leverage 55% below peers and the lowest in DHI’s history (20% net debt/capital vs. peers at 45%).
    The shares are attractive at 11.8-12.4x our 2017-2018 EPS, 1.8x book value, and 1.6x forward book value.
    D.R. Horton's market capitalization rose to $13.4 billion today from $13 billion yesterday. It reported net income of $886 million on sales of $12.2 billion in 2016.

    http://www.barrons.com/articles/the-hot-stock-d-r-horton-gains-3-8-1499461212