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Here's How Much You'd Have If You Invested $1000 in D.R. Horton a Decade Ago
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in D.R. Horton (DHI - Free Report) 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.
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
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in D.R. Horton a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in April 2013 would be worth $4,411.33, or a 341.13% gain, as of April 26, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 156.86% and the price of gold went up 31.82% over the same time frame.
Looking ahead, analysts are expecting more upside for DHI.
D.R. Horton reported second-quarter fiscal 2023, with earnings and revenues beating the Zacks Consensus Estimate. Although, earnings and revenues declined on a year-over-year basis due to prevailing softness in the market, the company highlighted that net sales orders increased 73% from the fiscal first quarter, defying the prevailing higher mortgage rates and inflationary pressures. 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. DHI’s production capabilities, industry-leading market share, solid acquisition strategy, broad geographic footprint and diverse product offerings across multiple brands and price points are encouraging.
The stock has jumped 13.07% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 7 higher, for fiscal 2023; the consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in D.R. Horton a Decade Ago
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in D.R. Horton (DHI - Free Report) 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.
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
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in D.R. Horton a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in April 2013 would be worth $4,411.33, or a 341.13% gain, as of April 26, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 156.86% and the price of gold went up 31.82% over the same time frame.
Looking ahead, analysts are expecting more upside for DHI.
D.R. Horton reported second-quarter fiscal 2023, with earnings and revenues beating the Zacks Consensus Estimate. Although, earnings and revenues declined on a year-over-year basis due to prevailing softness in the market, the company highlighted that net sales orders increased 73% from the fiscal first quarter, defying the prevailing higher mortgage rates and inflationary pressures. 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. DHI’s production capabilities, industry-leading market share, solid acquisition strategy, broad geographic footprint and diverse product offerings across multiple brands and price points are encouraging.
The stock has jumped 13.07% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 7 higher, for fiscal 2023; the consensus estimate has moved up as well.