Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Is D.R. Horton, Inc. (DHI) the Best Residential Construction Stocks to Buy?

We recently published a list of 10 Best Residential Construction Stocks to Buy. In this article, we are going to take a look at where D.R. Horton, Inc. (NYSE:DHI) stands against other best residential construction stocks to buy.

News from the US Residential Construction

On February 18, Reuters reported that the US homebuilder sentiment dropped to a five-month low in February. While new home construction is heavily dependent on imported materials such as lumber, there are concerns regarding tariffs on imports as well as higher mortgage rates further bringing housing costs higher. NAHB Chief Economist Robert Dietz reiterated the concerns, stating

“With 32% of appliances and 30% of softwood lumber coming from international trade, uncertainty over the scale and scope of tariffs has builders further concerned about costs”

Sheryl Palmer, Taylor Morrison CEO, joined CNBC’s ‘Closing Bell Overtime’ to shed light on the housing market amidst weak builder confidence and slowing activity. According to her, the first-time buyer is still stretched. Regarding tariffs, she deemed the situation still uncertain but referred to them as something that will have an impact and will be ‘unfortunate’ since affordability is stretched and this certainly won’t help.

Previously, Ivy Zelman, Zelman and Associates Executive Vice President appeared on CNBC, saying the spring selling season is not yet a disaster but is off to a soft start. Alongside, the risk of inflation from tariffs and the deportation risk which is a concern for construction workers could put more inflation in labor is there. Simultaneously, builders do not have pricing power and hence, they are resorting to offering concessions.

Our Methodology

In order to compile a list of the 10 best residential construction stocks to buy, we first used a stock screener to make an extended list of the relevant companies with the highest market caps. Moving on, we shortlisted the top 10 stocks from our list which had the highest number of hedge fund holders. The 10 best residential construction stocks to buy have been arranged in ascending order of their hedge fund holders, as of Q4 2024.

“Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A construction site of a multi-family residential complex, a modern urban skyline in the background.

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

Number of Hedge Fund Holders: 60

D.R. Horton, Inc. (NYSE:DHI) is a Fortune 500 company that engages in the construction and sale of high-quality homes. The company started off with its first home in 1978 in Fort Worth and has closed over 1,100,000 homes in its 46-year history. Other than homebuilding, the company offers services such as mortgage, title, and insurance. DHI operates in 126 markets in 36 states across the country.

D.R. Horton, Inc. (NYSE:DHI) has a clear dominance in the American homebuilding market as it has been the largest homebuilder by volume since 2002. The homebuilder’s market share shows its strength, with approximately one out of seven new single-family homes in the United States built by DHI. As of September 30, 2024, D.R. Horton is the largest builder in 5 of the top 7 US housing markets and in 61 of the 125 markets in which it operated.

DHI has demonstrated a track record of consistent financial performance. The recent first fiscal quarter of 2025 is evidence, as the homebuilder achieved or exceeded guidance across all metrics. DHI recorded a consolidated pre-tax income of $1.1 billion alongside a pre-tax profit margin of 14.6%. This made it return $1.2 billion to shareholders through share repurchases and dividends during the quarter. Demographics supporting housing demand remain strong and continue to benefit the homebuilder.

Overall, DHI ranks 3rd on our list of best residential construction stocks to buy. While we acknowledge the potential of DHI as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than DHI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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

Forget Nvidia: This Robotics Stock Is Your 100x Ticket

AI game is changing.

The chip guys, like Nvidia, they had their moment. The first AI wave? They rode it high.

But guess what? That ride’s over. Nvidia’s been flatlining since June 2024.

Remember the internet boom? Everyone thought Cisco and Intel were the kings, right? Wrong. The real money was made by the companies that actually used the internet to build something new: e-commerce, search engines, social media.

And it’s the same deal with AI. The chipmakers? They’re yesterday’s news. The real winners? They’re the robotics companies, the ones building the robots we only dreamed about before.

We’re talking AI 2.0. The first wave was about the chips, this one’s about the robots. Robots that can do your chores, robots that can work in factories, robots that will change everything. Labor shortages? Gone. Industries revolutionized? You bet.

This isn’t some far-off fantasy, it’s happening right now. And there’s one company, a robotics company, that’s leading the charge. They’ve got the cutting-edge tech, they’re ahead of the curve, and they’re dirt cheap right now. We’re talking potential 100x returns in the next few years. You snooze, you lose.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.

For a ridiculously low price of just $29.99, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee:  If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

 

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.99.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!

A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…