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DHI · NYSE · STOCK

D. R. Horton (DHI) Stock Analysis

Consumer Cyclical Updated October 10, 2026
$134.86
52W $131.75 – $170.79
60/100
$37.73B
12.8
1.35
AI Committee Verdict
Buy
60/100
Conviction: Contested · 50% agreement · 6 analysts
+2.3%
-0.7%
3.14:1
Contested

Is DHI Bullish or Bearish?

Bullish. Innellis AI committee rates D. R. Horton (DHI) Buy with a composite score of 60/100 , based on 6 analysts with 50% agreement. Last updated October 10, 2026.

What Would Change This View

Upgrade to Strong Buy
Requires a committee score of 75.0 — +14.58 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Watch
Requires the score to fall below 55.0 — -5.42 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.

Executive Summary

The committee is genuinely divided. Risk Analyst sees a compelling case — low leverage (debt-to-equity 0.25) -- balance sheet can absorb a shock. Portfolio Manager remains cautious — sector concentration is already high (hhi 2796.97). This disagreement is itself the signal — the setup is not clean in either direction.

Bull & Bear Case

Bull Case
  • P/E of 12.4 is inexpensive for the broad market — Value
  • 3 consecutive earnings beats -- consistent execution — Growth
  • Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
  • Low leverage (debt-to-equity 0.25) -- balance sheet can absorb a shock — Risk
Bear Case
  • Revenue declining -3.5% YoY -- this is not a growth story right now — Growth
  • EPS declining -15.7% YoY despite any revenue growth — Growth
  • Price structure making lower highs and lower lows — Technical
  • MACD histogram negative -- bearish momentum — Technical
  • Trend and market structure agree -- coherent bearish picture — Technical
Both cases are generated from quantitative data signals, not qualitative or forward-looking judgement. They summarise what the numbers say today.
Price History (6M)

AI Investment Committee

Committee Consensus As of October 10, 2026
Overall Committee Score
60/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 25%
of 178 Consumer Cyclical peers
Value Analyst bullish
68 / 100 · Moderate confidence
Classic value case: cheap on multiples with earnings power to back it up
+ P/E of 12.4 is inexpensive for the broad market
Growth Analyst neutral
50 / 100 · High confidence
Moderate growth -- present but not remarkable
+ 3 consecutive earnings beats -- consistent execution
− Revenue declining -3.5% YoY -- this is not a growth story right now
Technical Analyst neutral
42 / 100 · High confidence
Mixed or range-bound price action
− Price structure making lower highs and lower lows
Risk Analyst bullish
80 / 100 · Low confidence
Risk profile is manageable -- leverage, volatility, and event exposure all look contained
+ Low leverage (debt-to-equity 0.25) -- balance sheet can absorb a shock
Macro Analyst bullish
65 / 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst neutral
58 / 100 · Low confidence
News flow is mixed or quiet -- no strong signal either way right now
Portfolio Manager bearish
30 / 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
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Investment Thesis Evolution

Committee score moved marginally from 60.4 to 60.4.

Comparing 2026-10-09 to 2026-10-10 (1 day apart).

Technical Analysis

RSI (14)
42.6
Neutral
MACD Histogram
-0.148
Bearish Momentum
Trend Direction
Downtrend
Weekly: Sideways
Market Structure
Lh Ll
Support
$133.88
Resistance
$137.95
Bollinger %B
0.21
Inside Bands
Price vs Moving Averages
EMA 9
$135.95 Below
EMA 21
$138.01 Below
EMA 50
$141.63 Below
EMA 200
$146.79 Below

Fundamental Analysis

Valuation
99
Growth
76
Profitability
57
Financial Health
100
Cash Flow
70
Valuation
P/E Ratio 12.8×
P/B Ratio 1.63×
PEG Ratio -0.80
Dividend Yield 1.33%
52W High $170.79
52W Low $131.75
Quality & Growth
ROE 1482.1%
ROA 1010.7%
Gross Margin 2261.2%
Operating Margin 1163.9%
Revenue Growth YoY —
Debt / Equity 0.30
AI Fundamental Assessment
P/E ratio of 12.8 (inexpensive relative to a 15-40x range); Price-to-book of 1.6x; PEG ratio of -0.8 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 14.8%; Return on assets of 10.1%; Net margin of 9.2%; Gross margin of 22.6%; Current ratio of 9.84 (healthy short-term liquidity); Debt-to-equity of 0.30; Free cash flow per share is positive (11.51); Most recent quarter beat estimates by 4.4%; 3 consecutive earnings beats; EPS growth accelerating (+10.3% -> +42.9% QoQ); Average YoY EPS growth of -4.8%; Analyst estimates rising over recent quarters
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