10 Worst Beaten Down Stocks to Buy Now

4) D.R. Horton, Inc. (NYSE:DHI)

Stock Price as of February 20: $125.9

52-week Low: $124.2

Average Upside Potential: ~35.3%

Number of Hedge Fund Holders: 60

D.R. Horton, Inc. (NYSE:DHI) operates as a homebuilding company. The company’s scale and operational efficiency are playing as key strengths amidst the competitive homebuilding landscape. D.R. Horton, Inc. (NYSE:DHI)’s ability to provide a diverse range of products at competitive prices places it well to capture market share, mainly in an environment where affordability is a concern for homebuyers.

Even though the level of new and existing home inventories increased from historically low levels, the supply of homes at affordable price points remains limited, and demographics supporting housing demand are favorable. D.R. Horton, Inc. (NYSE:DHI) stated that, amidst continued affordability challenges and a competitive market, incentives including mortgage rate buydowns have aided in addressing affordability and spurring demand. D.R. Horton, Inc. (NYSE:DHI) is well-placed with its affordable product offerings and flexible lot supply.

The company has diverse product offerings and a national footprint, which have placed it well to capitalize on the expected shift to the single-family housing market. D.R. Horton, Inc. (NYSE:DHI)’s scale and operational efficiency enable it to deliver homes at competitive prices, which can be beneficial in addressing the affordability challenges. Parnassus Investments, an investment management company, released the Q3 2024 investor letter. Here is what the fund said:

 “D.R. Horton, Inc. (NYSE:DHI), a leading homebuilder, saw its shares rise amid confidence that a lower-rate environment would lead to more affordable housing prices and a corresponding increase in home buying. Further, investors were impressed by the company’s execution and management’s intention to deploy cash to a stock buyback.”