10 Most Profitable Value Stocks To Invest In

3. D.R. Horton, Inc. (NYSE:DHI)

Number of Hedge Fund Holders: 62

Forward P/E as of October 23, 2024: 12.4

10 Year Revenue Growth Rate: 17.5%

Trailing 12 Month (TTM) Net Income (June 30): $4.98 Billion

D.R. Horton, Inc. (NYSE:DHI) is a home construction company that was founded in 1978. It sells homes in more than 113 markets across 33 states in the United States. D.R. Horton made its first home in 1978 and by 2023 it had completed 1 million homes. The company also provides insurance services and mortgage services.

In the fiscal third quarter of 2024, D.R. Horton, Inc. (NYSE:DHI) logged $10 billion in consolidated revenues, up by 2%. Of this, its homebuilding segment accounted for most of the revenue in FQ3 2024, at $9.2 billion, up by 6%. For the nine months ended June 30, 2024, the company generated $26.8 billion in revenues, compared to $25 billion during the same period in fiscal year 2023. Similarly, for the nine months that ended June 30, 2024, home-building revenue increased by 9% to reach $25 billion, up from $22.9 billion during the same period in the fiscal year 2023. In the first nine months of FY 2024, the company closed more than 66,000 homes, up by 10% year-over-year.

D.R. Horton, Inc. (NYSE:DHI) is the largest builder in 3 of the top 5 housing markers in the United States, and in 52 of 118 markets in which they operated as of September 30, 2023. Its dominance in the housing industry is what contributes to its ranking on our list. DHI is also focused on enhancing operational efficiency by improving its sales pace, managing pricing for each community, optimizing land and home inventory levels, and increasing market share.

Based on its market share and strong financial performance, D.R. Horton, Inc. (NYSE:DHI) is one of the most profitable value stocks to invest in. The stock was held by 62 hedge funds at the close of Q2 2024. Analysts are also bullish on the stock and their median price target represents an upside of 15% from current levels.

Ariel Investments’ Ariel Global Fund stated the following regarding D.R. Horton, Inc. (NYSE:DHI) in its Q2 2024 investor letter:

“We also added positions in two of the largest homebuilders in the U.S., D.R. Horton, Inc. (NYSE:DHI) and Lennar Corporation. We think the U.S. housing market will continue to experience healthy demand due to substantial supply shortages resulting from a lack of construction following the global financial crisis. Against this favorable backdrop, we believe both companies are well-positioned to capitalize on recent affordability issues driven by rising housing prices, with their entry level, single-family-focused business models.”