D.R. Horton, Inc. (DHI) is a leading U.S. homebuilding company headquartered in Arlington, Texas. The company operates across the United States and builds a wide range of residential properties, including single-family homes, townhomes, duplexes, and attached homes. In addition to home construction, D.R. Horton provides mortgage financing and other services to homebuyers. The company’s current market cap is $46.9 billion.

Companies valued at $10 billion or more are generally considered “large-cap” stocks, and D.R. Horton fits this criterion perfectly, exceeding the mark. D.R. Horton is renowned for being a leading U.S. homebuilder with a wide reach.

However, the homebuilder stock has fallen 14.7% from its 52-week high of $184.54, achieved on Sept. 8. Shares of DHI declined 7.2% over the past three months, lagging behind the broader S&P 500 Index’s ($SPX) 5.5% increase during the same time frame.

In the longer term, DHI is up 12.6% on a YTD basis, compared to SPX’s 15.8% gains. However, DHI stock has slumped 6.8% over the past 52 weeks, significantly underperforming the SPX’s 12.9% returns over the same time frame.

DHI stock has been trading above the 200-day moving average since late July, with some fluctuations lately. However, the stock has been trading below the 50-day moving average since early October.

D.R. Horton’s share price has come under pressure due to a weakening U.S. housing market, as demand for new homes has softened with high mortgage rates and affordability concerns discouraging many buyers. Also, people are becoming reluctant amid worries about the economy and their jobs, and margins are affected amid rising costs, combined with increased sales incentives and lower average selling prices.  

In the competitive space, rival Lennar Corporation (LEN) has declined 25.3% over the past 52 weeks and 4.5% on a YTD basis, lagging behind DHI. 

Analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 21 analysts covering the stock, and the mean price target of $164.38 suggests a premium of only 4.5% to current levels.

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