D.R. Horton Stock on the Rise: Technical Analysis Suggests Overbought State
December 22, 2023
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Recently, the stock of the company has been on the rise and technical analysis suggests that it has reached an overbought state. As the demand for housing has remained strong, the company’s shares have surged significantly over the last few months. This has attracted the attention of investors and analysts alike who have been closely monitoring its price movements. Technical analysis of D.R. ($NYSE:DHI) Horton’s stock has revealed that the stock is in an overbought state, meaning that its current price is higher than the fundamental value of the stock.
This suggests that there may be a limited upside potential for investors in the near-term, as the stock price is likely to decline in the coming days. Nevertheless, investors are advised to monitor D.R. Horton‘s performance closely and exercise their own judgment when making investment decisions.
Stock Price
Wednesday was an uneventful day for D.R. HORTON stock, with the stock opening at $150.0 and closing at $149.4, down by 0.6% from its previous closing price of 150.2. This could be beneficial for long-term investors who may be looking for an entry point for D.R. HORTON stock. Nevertheless, investors should continue to monitor the stock’s performance in the short term. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for D.r. Horton. More…
| Total Revenues | Net Income | Net Margin |
| 35.46k | 4.75k | 13.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for D.r. Horton. More…
| Operations | Investing | Financing |
| 4.3k | -310.2 | -2.67k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for D.r. Horton. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 32.58k | 9.44k | 67.78 |
Key Ratios Snapshot
Some of the financial key ratios for D.r. Horton are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.4% | 28.3% | 17.2% |
| FCF Margin | ROE | ROA |
| 11.7% | 17.2% | 11.7% |
Analysis
After analyzing D.R. HORTON‘s fundamentals, GoodWhale’s Star Chart gave the company a strong mark in the categories of assets, dividend, growth and profitability. On top of that, its high 10/10 health score in terms of cashflow and debt capabilities suggests that the company is well-suited to sustain operations during difficult times. We classify D.R. HORTON as a ‘rhino’, meaning that the company has achieved moderate revenue or earnings growth over time. Given that D.R. HORTON has been identified as a reliable ‘rhino’ stock, investors who are looking for steady returns and stability may find it an attractive option. The financial stability of the company provides a sense of security for investors who dislike risk and want to ensure that their funds are secure. The fact that it has a high health score further adds to the appeal of D.R. HORTON for investors who value long-term sustainability. More…
Peers
The competition in the homebuilding industry is fierce, with many large companies vying for market share. D.R. Horton Inc is one of the largest homebuilders in the United States, and it competes against other large homebuilders such as PulteGroup Inc, Toll Brothers Inc, and StoneMor Inc.
– PulteGroup Inc ($NYSE:PHM)
PulteGroup is one of the largest homebuilders in the United States. The company has a market cap of $9.17 billion as of 2022 and a return on equity of 24.25%. PulteGroup builds homes for a variety of buyers, including first-time buyers, move-up buyers, and active adults. The company also has a financial services arm that provides mortgage and title services. PulteGroup has operations in more than 50 markets across the United States.
– Toll Brothers Inc ($NYSE:TOL)
Toll Brothers Inc is a homebuilding company that was founded in 1967. The company is headquartered in Horsham, Pennsylvania, and it operates in the United States and Canada. As of 2022, the company has a market cap of 4.88B and a Return on Equity of 15.37%. The company builds single-family detached homes, townhomes, and condominiums. It also develops master-planned communities.
– StoneMor Inc ($NYSE:STON)
StoneMor Inc. is a publicly traded death care company headquartered in Trevose, Pennsylvania. The company operates funeral homes, cemeteries, and cremation facilities in the United States. StoneMor was founded in 1996 and became a publicly traded company in 2004. As of 2018, the company operated 304 locations in 27 states and Puerto Rico.
Summary
D.R. Horton is a homebuilding company whose stock has been trending upwards recently, indicating a potential overbought state. Investment analysis of the stock examines the momentum and volume of the stock to determine if it is overbought or oversold. Analysts look for certain technical indicators which include a sustained upward trend, high trading volumes, and high relative strength index (RSI). The RSI measures how fast a stock is rising or falling in relation to itself over time. If the RSI is high it may indicate that the stock is overbought and needs to cool off.
Meanwhile, analysts also look at the price/earnings ratio (P/E) to determine if the stock is undervalued or overvalued. If P/E is high, it indicates that the stock may be overvalued. Ultimately, investors should use these technical analysis tools to judge if D.R. Horton is overbought and decide whether to invest in it or not.
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