D.R. Horton, Inc. was trading at $158.46 on December 2nd, with trailing and forward P/E ratios of 13.60 and 13.85 respectively. A bullish thesis on DHI suggests a 60% upside potential to $254 per share over the next 12-18 months, supported by strong growth and operational resilience.

Horton’s growth is driven by controlled lot supply, national footprint, and backlog conversion. Margins are expected to be resilient with low-20s gross margins and integrated services. Peer multiples suggest the stock is undervalued, with catalysts in upcoming quarterly results indicating potential re-rating towards intrinsic value.

Downside risks include high mortgage rates, incentive pressures, or supply constraints. However, conservative assumptions and operational strength underpin the investment case. D.R. Horton presents a compelling opportunity with mispricing, visibility of catalysts, and strong operational fundamentals.

The bullish thesis on D.R. Horton, Inc. emphasizes a mispricing opportunity with higher net margins, ROE, and peer multiple re-rating potential. The stock has appreciated by approximately 26.01% since previous coverage in May 2025, with strong returns, controlled lot supply through Forestar, and disciplined capital approach supporting the investment case.

Read more at Yahoo Finance: D.R. Horton, Inc. (DHI): A Bull Case Theory