12 Worst Depressed Stocks To Buy Now

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

52 Week Range: 124.23 – 199.85 

Current Share Price: $126.78

Analyst Upside Potential: 32.51%

1-Year Performance: -15.62%

Number of Hedge Fund Holders: 60 

D.R. Horton, Inc. (NYSE:DHI) is one of America’s largest homebuilders by volume. It operates in 121 markets across 33 states. The company engages in constructing and selling a diverse range of high-quality homes, with prices generally ranging from $200,000 to over $1,000,000. Moreover, the company is also involved in national residential lot development through its majority-owned subsidiary, Forestar Group Inc.

During the fiscal first quarter of 2025, the company faced slightly lower net sales orders compared to the last year. However, the company maintained its demand by focusing on affordability through smaller floor plans and incentives such as mortgage rate buy-downs. As a result, D.R. Horton, Inc. (NYSE:DHI) achieved earnings of $2.61 per diluted share, with consolidated pre-tax income of $1.1 billion on revenues of $7.6 billion, resulting in a pre-tax profit margin of 14.6%.

Parnassus Core Equity Fund mentioned the company in its Q4 2024 investor letter, stating that the company’s shares dropped due to the higher mortgage rates, which led to a slower housing market and negative investor sentiment towards the industry. Moreover, the expectations of continued high interest rates during the quarter have further worsened investor confidence, highlighting affordability challenges and a potential slowdown in homebuyer activity. The stock is currently trading close to its 52-week low, thereby making it one of the worst depressed stocks to buy now.

Parnassus Core Equity Fund stated the following regarding D.R. Horton, Inc. (NYSE:DHI) in its Q4 2024 investor letter:

“D.R. Horton, Inc. (NYSE:DHI), the nation’s largest homebuilder, saw its shares decline as the market for new homes slowed against a backdrop of higher mortgage rates. As expectations for continued higher interest rates flared late in the quarter, investor sentiment on the housing sector worsened.”