Here's Why Investors Should Hold D.R. Horton (DHI) Stock Now
Consolidated pre-tax income increased 29% to $2.1 billion on $16.1 billion revenues (up 14%) in fiscal 2018. Horton have outperformed its industry in the past year, given strong fundamentals and operating efficiencies. Notably, first-time homebuyers represented 49% of the closings in the fourth quarter of fiscal 2018, up from 44% in the same quarter last year.Its Express and Freedom brands, which sell homes at lower prices, accounted for 37% and 57% of homes sold, respectively, in the fourth quarter.Meanwhile, the homebuilder’s consistent efforts to reduce both construction and selling, general and administrative (SG&A) expenses have been boosting its profitability. These efforts helped the company to increase earnings by 41% to $3.81 per share in fiscal 2018.With an impressive backlog ($4 billion as of Sep 30, 2018), along with a well-stocked supply of land, lots and homes, this Zacks Rank #3 (hold) company is well positioned for fiscal 2019 as well.