7 Stocks That Could Surge From LA Wildfires Recovery Efforts

1. D.R. Horton Inc. (NYSE:DHI)

D.R. Horton focuses on providing affordable homes to its customers, a segment that has experienced impressive growth lately. As the LA wildfires continue to rage, affordable homes could become a focus for both the government and the public. Apart from this, the company also has a diversified portfolio, with operations ranging from rentals to its subsidiary Forestar.

The company’s 2025 estimates are interesting to look at. Despite a rise in the number of households that the company could sell this year, its revenue is expected to decline. This could be due to the company’s other business segments, or lower house prices. The increase in demand post-LA wildfire recovery could help the company plug this gap, allowing it to continue its growth path.

The stock’s downward trajectory since October is for good reason. Its earnings are declining and so is its revenue. However, at the considerable discount that the price now offers, the stock could bottom out soon. That’s when catalysts like the interest rates and improving housing prospects for 2025 could kickstart the next rally.

D.R. Horton is not on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 69 hedge fund portfolios held DHI at the end of the third quarter which was 62 in the previous quarter. While we acknowledge the potential of DHI as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as DHI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.