Advertisement
Australia markets closed
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • AUD/USD

    0.6519
    -0.0017 (-0.25%)
     
  • OIL

    83.11
    +1.76 (+2.16%)
     
  • GOLD

    2,254.80
    +42.10 (+1.90%)
     
  • Bitcoin AUD

    108,389.56
    +2,468.78 (+2.33%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • AUD/EUR

    0.6035
    +0.0004 (+0.07%)
     
  • AUD/NZD

    1.0903
    +0.0023 (+0.22%)
     
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NASDAQ

    18,254.69
    -26.15 (-0.14%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • Dow Jones

    39,807.37
    +47.29 (+0.12%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     

If You Invested $1000 in D.R. Horton a Decade Ago, This is How Much It'd Be Worth Now

How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.

What if you'd invested in D.R. Horton (DHI) ten years ago? It may not have been easy to hold on to DHI for all that time, but if you did, how much would your investment be worth today?

D.R. Horton's Business In-Depth

With that in mind, let's take a look at D.R. Horton's main business drivers.

ADVERTISEMENT

D.R. Horton, Inc., based in Texas, is one of the leading national homebuilders, primarily engaged in the construction and sale of single-family houses both in the entry-level and move-up markets. D.R. Horton’s operations are spread across 110 markets in 33 states in the East, Midwest, Southeast, South Central, Southwest and West regions of the United States. Its houses are sold under the brand names D.R. Horton - America’s Builder, Emerald Homes, Express Homes and Freedom Homes.

D.R. Horton’s reporting segments are as follows: Homebuilding (contributing 95.3% to total revenues in fiscal 2022), Forestar (4.5%), Financial Services (2.4%) and Rental (1.5%). Of the total revenues, 3.7% represents the elimination of intercompany transactions & Other. The Homebuilding segment comprises six reporting regions and derives revenues primarily from the sale of completed homes built on lots it develops and on finished lots purchased ready for home construction. In addition to single-family detached homes (accounting for around 90% of home sale revenues), the segment builds attached homes, such as town homes, duplexes, triplexes and condominiums. The segment also derives revenues by selling lands and lots.

As of Mar 31, 2023, the Forestar land development reporting segment operated in 52 markets and 20 states, where it owns — directly or through joint ventures — interests in residential and mixed-use projects. Forestar Group Inc. (FOR), a publicly-traded residential and real estate development company, is a majority-owned subsidiary of D.R. Horton. On Mar 31, 2023, D.R. Horton owned 63% of Forestar’s outstanding common stock.

The Financial Services segment, through the mortgage subsidiary, DHI Mortgage, provides mortgage financing and title agency services primarily to the company’s homebuilding customers.

The Rental segment includes its single-family and multi-family rental operations. Meanwhile, the company remains engaged in other business activities through subsidiaries, through which it conducts insurance-related operations and owns non-residential real estate. These operations are grouped together and presented as other.

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in D.R. Horton ten years ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in June 2013 would be worth $4,953.59, or a gain of 395.36%, as of June 7, 2023, and this return excludes dividends but includes price increases.

Compare this to the S&P 500's rally of 164.02% and gold's return of 36.81% over the same time frame.

Going forward, analysts are expecting more upside for DHI.

Shares of D.R. Horton have outperformed its industry in the past year. The company has been benefiting from production capabilities, industry-leading market share, solid acquisition strategy, broad geographic footprint and diverse product offerings across multiple brands and price points. The company’s strategic shift toward more entry-level affordable homes has been paying off, with the segment experiencing strong demand and limited supply. The company also believes that the housing demand will remain favorable, courtesy of a limited supply of new and existing homes at affordable price points despite challenging market conditions, comprising higher rates and uncertain economic conditions. Earnings estimates for fiscal 2023 have increased in the past 60 days, depicting analysts’ optimism over the stock’s growth potential.

The stock has jumped 5.76% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 16 higher, for fiscal 2023; the consensus estimate has moved up as well.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

D.R. Horton, Inc. (DHI) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research