D.R. Horton missed both revenue and earnings expectations for fiscal fourth quarter, amidst a rising interest rate environment apparently dampening demand for homes.
The biggest home building company in the U.S. earned $4.67 a share in the quarter, compared to $5.07 a share expected by analysts.
Revenue rose just under +19% from the year-ago quarter to $9.64 billion, but fell short of the Street expectations of $9.87 billion. Homebuilding revenue came in at $9.4 billion, increasing from $7.6 billion in the year-ago quarter.
The company experienced a rise in cancellation rate to 32%, from 24% in Q3 and from 19% in the year-ago quarter. Net orders dropped to 13,582 homes (value of $5.4 billion), from 16,693 homes ($6.9 billion value) in Q3 and from 15,949 homes ( $6.0 billion value) in Q4 2021.
The 10-day moving average for DHI crossed bullishly above the 50-day moving average on March 05, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 12 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on March 19, 2024. You may want to consider a long position or call options on DHI as a result. In of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for DHI just turned positive on March 19, 2024. Looking at past instances where DHI's MACD turned positive, the stock continued to rise in of 49 cases over the following month. The odds of a continued upward trend are .
DHI moved above its 50-day moving average on February 29, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DHI advanced for three days, in of 336 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 349 cases where DHI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The 10-day RSI Indicator for DHI moved out of overbought territory on March 25, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 46 similar instances where the indicator moved out of overbought territory. In of the 46 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DHI declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
DHI broke above its upper Bollinger Band on March 20, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. DHI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 54, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.322) is normal, around the industry mean (6.218). P/E Ratio (11.675) is within average values for comparable stocks, (88.953). Projected Growth (PEG Ratio) (0.640) is also within normal values, averaging (1.436). DHI has a moderately low Dividend Yield (0.007) as compared to the industry average of (0.043). P/S Ratio (1.536) is also within normal values, averaging (75.188).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a company which engages in construction and sale of single family homes
Industry Homebuilding