DHI · NASDAQ · STOCK
D. R. Horton
$151.06
52W $131.75 – $184.55
66/100
$42.26B
14.3
1.38
⚠
Buy rating, but near-term risk/reward is unfavorable
The long-term recommendation is based on the composite investment score. The near-term risk/reward is based on nearby support and resistance levels. These can differ when a strong company trades close to resistance with support further below.
Is DHI Bullish or Bearish?
Bullish.
Innellis AI committee rates D. R. Horton (DHI) Buy with a composite score of 66/100
, based on 6 analysts with 83% agreement.
Last updated August 09, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +9.33 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 — -10.67 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 primary driver is low leverage (debt-to-equity 0.25) -- balance sheet can absorb a shock. The main limiting factor is revenue declining -3.5% yoy -- this is not a growth story right now. The committee is constructive but not yet at full conviction.
Bull & Bear Case
Bull Case
- P/E of 13.8 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
- MACD histogram positive -- bullish momentum — Technical
- Weekly trend (sideways) confirms the daily trend -- multi-timeframe agreement — Technical
- 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
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 August 09, 2026
Overall Committee Score
66/100
Agreement
83%
Analysts
6
Conviction
High
Sector Rank
Top 15%
of 124 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 13.8 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
bullish
61
/ 100 · High confidence
Price action is constructive -- trend and momentum agree
+ MACD histogram positive -- bullish momentum
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
70
/ 100 · Moderate confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst
bullish
64
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.21 across 14 articles, 14d)
Portfolio Manager
neutral
55
/ 100 · Moderate confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− 4 existing position pair(s) are highly correlated already
Investment Thesis Evolution
Committee score moved marginally from 65.3 to 65.7.
- New bullish signals: 1 appeared.
Analyst-level changes:
- News Analyst: +1 bullish signal(s).
Comparing 2026-08-08 to 2026-08-09 (1 day apart).
Technical Analysis
RSI (14)
56.4
Neutral
MACD Histogram
0.544
Bullish Momentum
Trend Direction
Sideways
Weekly: Sideways
Market Structure
Hh Hl
Support
$140.10
Resistance
$154.18
Bollinger %B
0.74
Inside Bands
Price vs Moving Averages
EMA 9
$148.33
Above
EMA 21
$148.82
Above
EMA 50
$149.73
Above
EMA 200
$149.69
Above
Fundamental Analysis
Valuation
98
Growth
76
Profitability
57
Financial Health
100
Cash Flow
70
Valuation
P/E Ratio
14.3×
P/B Ratio
1.82×
PEG Ratio
-0.90
Dividend Yield
1.19%
52W High
$184.55
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 14.3 (inexpensive relative to a 15-40x range); Price-to-book of 1.8x; PEG ratio of -0.9 (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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