We recently published an article titled 10 Best Affordable Housing Stocks to Buy.
On January 27, Keefe Bruyette lowered the firm’s price target on D.R. Horton, Inc. (NYSE:DHI) to $163 from $168 while maintaining a Market Perform rating on the shares, reflecting a more cautious outlook for the homebuilding sector amid affordability pressures and elevated incentives.
During the company’s Q1 2026 earnings call on January 20, D.R. Horton, Inc. (NYSE:DHI) outlined solid forward guidance, projecting Q2 consolidated revenues of $7.3–$7.8 billion and homebuilding closings of 19,700–20,200 units. Management expects home-sales gross margins of 19.0%–19.5% and a consolidated pretax profit margin of 10.6%–11.1%, while noting that housing starts should increase sequentially in Q2. Although incentives are expected to remain elevated and sensitive to mortgage rate trends, the company continues to generate significant shareholder returns, planning approximately $2.5 billion in share repurchases and about $500 million in dividends.
Founded in 1978 and headquartered in Arlington, Texas, D.R. Horton, Inc. (NYSE:DHI) is one of the largest homebuilders in the United States. Its scale, disciplined capital return strategy, and ability to adjust production and incentives position the company to navigate near-term market challenges while remaining well-placed for a housing demand recovery over the longer term.
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