Ultime notizie per D.R. Horton (NYSE:DHI) Azioni

D.R. Horton

D.R. Horton is a leading homebuilder in the United States with operations in 118 markets across 33 states. D.R. Horton mainly builds single-family detached homes (over 90% of home sales revenue) and offers products to entry-level, move-up, luxury buyers, and active adults. The company offers homebuyers mortgage financing and title agency services through its financial services segment. D.R. Horton's headquarters are in Arlington, Texas, and it manages six regional segments across the United States.

D.R. Horton Inc

Diamond Hill Investment Group, Inc. - Class A Common Stock

Diamond Hill Investment Group Inc

DHI Group Inc

After dropping to their lowest level in two years following the Federal Reserve&#39;s September rate cut announcement, 30-year fixed-rate mortgages have climbed higher once again. Nonetheless, the environment is looking more favorable for homebuilding companies, as buyers are incentivized to make offers, and companies are better able to access loans to fund development projects and growth.
The top homebuilder stocks include major operations like D.R. Horton Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dhi#NYSE">DHI</a>) and Lennar Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/len#NYSE">LEN</a>), each of which closes tens of thousands of homes per year and has a market capitalization of around $50 billion or more. With interest rates expected to continue to fall in future FOMC meetings over the coming months, there may be more space in the competitive homebuilding market for smaller players as well. Cavco Industries Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cvco#NASDAQ">CVCO</a>) is one such small homebuilding stock that nonetheless warrants investor attention.
<h2>Manufactured Home Builder Ready to Address Housing Crisis</h2>
Cavco is a mid-cap firm that manufactures pre-fabricated homes and other buildings as well as RVs. It also provides financing for customers through a financial services division. Given the significant need for affordable housing throughout the U.S.&mdash;there is a shortage of an estimated 7.3 million rental homes for renters with extremely low incomes. For example&mdash;Cavco is a company that could be advantageously positioned to address this problem within the broader real estate sector.
The firm is seeing this demand reflected in its sales volume, capacity utilization, and other key metrics. For the first quarter of the 2025 fiscal year, ended late June 2024, Cavco reported 20% sequential improvement to home sales volume and capacity utilization of 65% as compared with 60% in the prior quarter. Order increases of about 25% sequentially have contributed to a backlog of $232 million by the end of the quarter, up from $191 million three months earlier.
In October, the U.S. Department of Housing and Urban Development (HUD) announced sweeping changes to its Manufactured Home Construction and Safety Standards, including allowing immediate construction of duplex, triplex and quadplex manufactured homes nationwide. Cavco is well-positioned to capitalize on this shift with new development projects immediately.
<h2>Looking at Cavco&#39;s Fundamentals</h2>
Cavco&#39;s fundamentals are a bit more mixed, as it maintains a forward P/E ratio of 25.1, comparably high relative to the rest of the industry. It also experienced a 310-basis-point consolidated gross margin decrease, year-over-year, to 21.7% in the first fiscal quarter, the result of lower average selling prices and weather events which led to losses in its financial services segment. Expenses also increased by more than 5% to $64.9 million for the quarter as a result of acquisition costs and other factors.
On the other hand, net revenue improved by about half a percent to $477.6 million, an important reversal after the prior quarter&#39;s 11.8% year-over-year decline in this area. The company&#39;s cash balance of over $359 million marks an improvement of $6.6 million relative to a year earlier, another strong sign as the firm prepares for a rush in affordable housing manufacturing.
Investors may be wondering if, after a run of 62.4% growth in the last year, Cavco shares still have room to climb. Based on analyst predictions, the firm has a consensus price target of $438.50, representing just under 1% of upside potential. At the same time, analysts expect earnings growth to continue as the company solidifies its upward movement in this area.
<h2>Comparing Cavco to Other Homebuilders</h2>
Taking D.R. Horton and Lennar as comparison points, Cavco may be relatively overvalued. These other firms have forward P/E ratios of 13.3 and 12.7, respectively. However, both firms have already experienced skyrocketing share prices in the last year, with returns of 83.4% for D.R. Horton and 73.7% for Lennar during that time. This may be part of the reason analysts have set price targets below current levels for both of these firms.
Cavco&#39;s specialization in low-cost, factory-built homes could give it an edge if the push to create new affordable housing options across the country continues. Though some of its fundamental metrics may give investors pause, it also has a strong position to benefit compared to other homebuilders.
The article &quot;<a href="https://www.marketbeat.com/originals/cavcos-future-looks-bright-as-affordable-housing-demand-soars/">Cavco&#39;s Future Looks Bright as Affordable Housing Demand Soars</a>&quot; first appeared on MarketBeat.

Earnings

Large Cap

Mid Cap

News

Financing

Price Target

Federal Reserve

Markets

Analyst Ratings

Trading Ideas

CVCO

Cavco's Future Looks Bright as Affordable Housing Demand Soars

Investors with significant funds have taken a bearish position in D.R. Horton (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>), a development that retail traders should be aware of.
This was brought to our attention today through our monitoring of publicly accessible options data at Benzinga. The exact nature of these investors remains a mystery, but such a major move in DHI usually indicates foreknowledge of upcoming events.
Today, Benzinga's options scanner identified 10 options transactions for D.R. Horton. This is an unusual occurrence. The sentiment among these large-scale traders is mixed, with 20% being bullish and 50% bearish. Of all the options we discovered, 9 are puts, valued at $283,812, and there was a single call, worth $48,990.
<h3>What's The Price Target?</h3>
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $185.0 and $195.0 for D.R. Horton, spanning the last three months.
<h3>Volume &amp; Open Interest Trends</h3>
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for D.R. Horton's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of D.R. Horton's whale trades within a strike price range from $185.0 to $195.0 in the last 30 days. 
<h3>D.R. Horton Call and Put Volume: 30-Day Overview</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1729008050_0.png" alt="Options Call Chart" />
<h3>Significant Options Trades Detected:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th style="text-align: right;">Open Interest</th>
<th style="text-align: right;">Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>DHI</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>10/25/24</td>
<td>$7.4</td>
<td>$6.9</td>
<td>$6.9</td>
<td>$185.00</td>
<td>$48.9K</td>
<td style="text-align: right;">90</td>
<td style="text-align: right;">75</td>
</tr>
<tr>
<td>DHI</td>
<td>PUT</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>11/15/24</td>
<td>$10.5</td>
<td>$10.2</td>
<td>$10.37</td>
<td>$195.00</td>
<td>$41.4K</td>
<td style="text-align: right;">224</td>
<td style="text-align: right;">5</td>
</tr>
<tr>
<td>DHI</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$13.7</td>
<td>$13.4</td>
<td>$13.8</td>
<td>$195.00</td>
<td>$37.2K</td>
<td style="text-align: right;">206</td>
<td style="text-align: right;">45</td>
</tr>
<tr>
<td>DHI</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>11/15/24</td>
<td>$10.5</td>
<td>$10.2</td>
<td>$10.38</td>
<td>$195.00</td>
<td>$36.7K</td>
<td style="text-align: right;">224</td>
<td style="text-align: right;">80</td>
</tr>
<tr>
<td>DHI</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$13.9</td>
<td>$13.4</td>
<td>$13.68</td>
<td>$195.00</td>
<td>$30.4K</td>
<td style="text-align: right;">206</td>
<td style="text-align: right;">67</td>
</tr>
</tbody>
</table>

<h3>About D.R. Horton</h3>
D.R. Horton is a leading homebuilder in the United States with operations in 118 markets across 33 states. D.R. Horton mainly builds single-family detached homes (over 90% of home sales revenue) and offers products to entry-level, move-up, luxury buyers, and active adults. The company offers homebuyers mortgage financing and title agency services through its financial services segment. D.R. Horton's headquarters are in Arlington, Texas, and it manages six regional segments across the United States.
Having examined the options trading patterns of D.R. Horton, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
<h3>Where Is D.R. Horton Standing Right Now?</h3>
<ul>
<li>With a trading volume of 763,432, the price of DHI is up by 2.42%, reaching $191.63.</li>
<li>Current RSI values indicate that the stock is is currently neutral between overbought and oversold.</li>
<li>Next earnings report is scheduled for 14 days from now.</li>
</ul>
<h3>Expert Opinions on D.R. Horton</h3>
1 market experts have recently issued ratings for this stock, with a consensus target price of $215.0.
Unusual Options Activity Detected: Smart Money on the Move
Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=Be8be9arja3be22bz20&amp;utm_source=benzinga-insights">Click here for access</a>. 
&#x2A; An analyst from B of A Securities has decided to maintain their Buy rating on D.R. Horton, which currently sits at a price target of $215. 
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for D.R. Horton, <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a> gives you real-time options trades alerts.

Options

D.R. Horton Unusual Options Activity

Hurricane Milton has left a significant mark on the Florida housing market, with cities such as Orlando, Tampa, Lakeland, Sarasota and Daytona Beach facing the <a href="https://www.benzinga.com/topic/hurricane-milton">brunt of the storm. </a>
As recovery efforts begin, analysts expect the state&#8217;s homebuilding sector to absorb an estimated $1.7 billion to $2.5 billion hit, according to a report from Goldman Sachs analyst Susan Maklari.
<h1 class="wp-block-heading">Homebuilder Exposure To Milton And Potential Delays</h1>
Homebuilders with significant exposure in the affected regions face potential delays in construction and home closings.
Maklari notes that major homebuilders such as PulteGroup Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PHM#NYSE">PHM</a>), Lennar Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>), and D.R. Horton Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) have significant exposure in the impacted regions, with 17%, 14%, and 11% of their 2023 closings, respectively, concentrated in these areas.
In contrast, builders like KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) and Toll Brothers Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TOL#NYSE">TOL</a>) have minimal exposure, with less than 3% each. Historically, homebuilders in Florida have faced delays of around 4-6 weeks following severe weather events, primarily due to resource allocation to existing community recovery efforts and labor shortages. 
Given Hurricane Milton&#8217;s strength, widespread geographic reach, and timing — just two weeks after Hurricane Helene — Maklari believes these delays could be extended even further.
"We expect some closings to be delayed, but this appears to be more of a timing issue. Any potential shortfall in Q4 will likely be made up in early 2025," Maklari said. 
The good news for builders is that many homes are already in later construction stages as they aim to hit year-end targets, and most builders tend to avoid constructing in floodplains.
Goldman Sachs estimates the total industry impact to fall between $1.7 billion and $2.5 billion, based on historical delays and local median home prices.
Read Also: <a href="https://www.benzinga.com/markets/equities/24/10/41278536/florida-is-a-top-state-for-new-home-builds-could-hurricane-milton-slow-it-down-4-homebuilder-sto">Florida Is A Top State For New Home Builds — Could Hurricane Milton Slow It Down? 4 Homebuilder Stocks That Could Come Under Pressure</a>
<h1 class="wp-block-heading">Builder Exposure Breakdown: Orlando And Tampa</h1>
The Orlando and Tampa metropolitan areas are two of the hardest-hit regions. 
In Orlando, D.R. Horton leads the market with 2,351 closings in 2023, accounting for 16.7% market share, followed closely by Lennar Corp. with 2,242 closings and a 15.9% share. 
In Tampa, Lennar has an even larger presence, with 3,570 closings making up 28.7% of the market, while D.R. Horton holds 21.6%.
<h1 class="wp-block-heading">Top Homebuilders In Orlando-Kissimmee-Sanford, Fla. MSA (2023 Unit Closings):</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td># Company</td>
<td>Closings</td>
<td>Mkt. Share</td>
<td>% of Homes Closed by Company</td>
</tr>
<tr>
<td>1 D.R. Horton</td>
<td>2,351</td>
<td>16.7%</td>
<td>2.6%</td>
</tr>
<tr>
<td>2 Lennar Corp.</td>
<td>2,242</td>
<td>15.9%</td>
<td>3.1%</td>
</tr>
<tr>
<td>3 The Villages of Lake Sumter</td>
<td>2,129</td>
<td>15.1%</td>
<td>77.9%</td>
</tr>
<tr>
<td>4 PulteGroup</td>
<td>1,852</td>
<td>13.2%</td>
<td>6.5%</td>
</tr>
<tr>
<td>5 Dream Finders Homes Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFH#NYSE">DFH</a>)</td>
<td>791</td>
<td>5.6%</td>
<td>10.8%</td>
</tr>
</tbody>
</table>
</figure>
<h1 class="wp-block-heading">Top Homebuilders In Tampa-St. Petersburg-Clearwater, Fla. MSA (2023 Unit Closings):</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Rank</th>
<th>Company</th>
<th>Closings</th>
<th>Market Share (%)</th>
</tr>
</thead>
<tbody>
<tr>
<td>1</td>
<td> Lennar Corp.</td>
<td> 3,570</td>
<td> 28.7</td>
</tr>
<tr>
<td>2</td>
<td> D.R. Horton</td>
<td> 2,692</td>
<td> 21.6</td>
</tr>
<tr>
<td>3</td>
<td> Homes by Westbay</td>
<td> 792</td>
<td> 6.4</td>
</tr>
<tr>
<td>4</td>
<td> PulteGroup</td>
<td> 756</td>
<td> 6.1</td>
</tr>
<tr>
<td>5</td>
<td> M/I Homes</td>
<td> 747</td>
<td> 6.0</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Source: Goldman Sachs</figcaption></figure>
<h1 class="wp-block-heading">Muted But Prolonged Impact On Building Products Demand</h1>
The broader building products sector is expected to experience a relatively muted response, with demand for materials such as roofing, flooring and insulation likely spread out over several months.
While Goldman Sachs does not anticipate a significant rise in overall product volumes, the short-term need for repairs could lead to temporary spikes in activity.
When it comes to damage to existing homes, the extent of destruction depends on the storm's specific characteristics, such as wind speed and flooding levels. 
Roofs, windows, and siding are typically most affected by wind damage, while floors, wallboard and insulation often suffer during flooding events. Key players in these product categories include:
<ul>
<li>Roofing: Owens Corning Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OC#NYSE">OC</a>), Carlisle Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CSL#NYSE">CSL</a>)</li>
<li>Windows: JELD-WEN Holding Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JELD#NYSE">JELD</a>)</li>
<li>Siding: Louisiana-Pacific Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LPX#NYSE">LPX</a>)</li>
<li>Flooring: Mohawk Industries Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MHK#NYSE">MHK</a>)</li>
<li>Insulation: Owens Corning Inc., TopBuild Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLD#NYSE">BLD</a>), Installed Building Products Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBP#NYSE">IBP</a>)</li>
</ul>
"Reconstruction demand typically spans several months," Maklari said, citing past hurricanes. 
Cleanup and insurance claims processing often delay actual repairs, with the full rebuilding efforts sometimes extending over 4 to 6 months. 
For example, Owens Corning reported that Hurricane Ian in 2022 resulted in 4 million squares of roofing damage, representing approximately 2.5% of annual roofing shipments.
Goldman Sachs does not foresee a sharp rise in overall building product volumes from Hurricane Milton. Instead, they expect a &#8220;pull-forward&#8221; in demand, meaning that short-term rebuilding activity might be strong, but it won't significantly raise long-term volumes. This could result in choppy revenue comparisons as the industry moves past the initial recovery phase.
Read Now:
<ul>
<li><a href="https://www.benzinga.com/top-stories/24/10/41277323/insurance-stocks-rebound-as-investors-assess-hurricane-miltons-aftermath-3-stocks-to-watch">Insurance Stocks Rebound As Investors Assess Hurricane Milton&#8217;s Aftermath: 3 Stocks To Watch</a></li>
</ul>
Photo: Shutterstock

Analyst Color

Small Cap

Econ #s

Economics

Real Estate

JELD

Hurricane Milton To Deliver $2.5B Blow To Florida's Homebuilding Sector, Goldman Sachs Says

Hurricane Milton could slow down new home construction in the state of Florida, which could have a negative impact on the overall <a href="https://www.benzinga.com/topic/housing">U.S. housing market.</a>
What Happened: Hurricane Milton has left devastation in the state of Florida that<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41254312/hurricane-milton-descends-on-florida-analysts-warn-of-impact-on-disney-nexteras-flo"> impacts multiple sectors</a> and will take time to clean up and restore portions of the state.
While portions of the cleanup effort will include the rebuilding and repair of existing homes, the hurricane could impact new homes built in Florida.
New home build permits could be delayed in portions of the state, while deliveries and orders could also be delayed on existing new homes. This could add costs to home builders who have large operations in the state of Florida, according to a Bloomberg <a href="https://www.bloomberg.com/news/live-blog/2024-10-10/hurricane-milton-strikes-florida?srnd=homepage-americas&amp;sref=TBDibEcD">report</a>.
The report names Taylor Morrison Home Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TMHC#NYSE">TMHC</a>), PulteGroup (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PHM#NYSE">PHM</a>), Lennar Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>) and D.R. Horton Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) as the home builders with the highest exposure in Florida.
Read Also: <a href="https://www.benzinga.com/news/24/10/41266095/hurricane-milton-knocks-out-power-for-over-2m-in-florida-nextera-energy-duke-energy-and-tampa-electr">Hurricane Milton Knocks Out Power For Over 2M In Florida, NextEra Energy, Duke Energy, And Tampa Electric Report Major Outages</a>
Why It's Important: Florida accounts for 14% of single-family home permits and ranks second for new homes in the U.S., according to a Bloomberg report.
A <a href="https://constructioncoverage.com/research/cities-investing-most-in-new-housing">report </a>from Construction Coverage highlights Florida as ranking fifth for new home builds. Among the large cities tracked for the most new home builds, Florida has three cities on the list.
Jacksonville ranks third, Orlando ranks seventh and Tampa ranks 12th.&nbsp;
Investors could soon get more details on the impact Hurricane Milton has on new home builds in the state of Florida. Pulte reports quarterly earnings on Oct. 22, Taylor Morrison reports on Oct. 23 and D.R. Horton reports on Oct. 29.
Lennar <a href="https://www.benzinga.com/news/earnings/24/09/40948948/homebuilder-lennar-reports-better-than-expected-q3-results-details">reported quarterly financial results </a>in September with revenue and earnings per share both beating estimates from analysts.
The company reported new orders were up 5% year-over-year to 20,587 homes and deliveries were up 16% year-over-year to 21,516 homes. Lennar reported a backlog of 16,944 homes worth an estimated $7.7 billion.
Outlooks from home builder companies could be conservative or guided down in the coming quarterly results and something investors should closely monitor.
The iShares U.S. Home Construction ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITB#BATS">ITB</a>) holds a basket of home building stocks with D.R. Horton (14.6%), Lennar (11.7%) and Pulte (7.8%) ranking first, second and fourth, respectively, in the fund by assets.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/real-estate/reit/24/09/41036750/new-us-single-family-home-sales-fall-from-prior-month-but-are-up-from-a-year-ago-as-mortgage-rat">New U.S. Single-Family Home Sales Fall From Prior Month — But Are Up From A Year Ago As Mortgage Rates Decline</a></li>
</ul>
Photo: Shutterstock

Equities

Sector ETFs

iShares Dow Jones US Homenstruction Index Fund

TMHC

Florida Is A Top State For New Home Builds — Could Hurricane Milton Slow It Down? 4 Homebuilder Stocks That Could Come Under Pressure

D.R. Horton (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) has outperformed the market over the past 5 years by 14.66% on an annualized basis producing an average annual return of 28.69%. Currently, D.R. Horton has a market capitalization of $59.83 billion. 
Buying $1000 In DHI: If an investor had bought $1000 of DHI stock 5 years ago, it would be worth $3,495.05 today based on a price of $183.49 for DHI at the time of writing.
<h3>D.R. Horton's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1728309618_0_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

If You Invested $1000 In This Stock 5 Years Ago, You Would Have $3,500 Today

The International Longshoremen's Association (ILA)<a href="https://www.benzinga.com/news/24/09/40906726/us-port-strike-in-october-could-lead-to-major-supply-chain-disruptions-says-container-trade-expert"> initiated a strike earlier this week amid ongoing negotiations</a> regarding wage increases and protections against automation and AI. The strike, if prolonged, could lead to supply constraints which may cause prices to rise, economists warn. These are the sectors that could be the most impacted by the strike:
Food and Beverage: The dozen or so U.S. ports affected by the strike import nearly $100 million a month of beverages and vinegar, according to a <a href="https://www.washingtonpost.com/business/2024/10/02/port-strike-shortages-food-cars-alcohol/">report</a> from the Washington Post. According to the American Farm Bureau Federation via the Washington Post, 80% of all imported beer, whiskey, scotch and more come through the ports will be impacted by the strike.
Constellation Brands (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STZ#NYSE">STZ</a>), the maker of Modelo, is one of the companies that imports the most beer to the U.S., although Constellation may be able to avoid disruptions caused by the port through ground transportation from Mexico. Heineken NV (OTC:<a class="ticker" href="https://www.benzinga.com/stock/HEINY#OTC">HEINY</a>) and other European beverage companies may feel more of the strike&#8217;s affects. Read Also: <a href="https://www.benzinga.com/news/24/10/41111978/dockworkers-strike-will-it-impact-your-holiday-shopping">Dockworkers Strike: Will It Impact Your Holiday Shopping? </a><a href="https://www.benzinga.com/news/24/10/41111978/dockworkers-strike-will-it-impact-your-holiday-shopping"> </a>Automotive And Car Parts: One of the most impacted sectors from the longshoremen strike is expected to be the automotive and car parts space. According to the Washington Post, the U.S. ports import more than half a billion dollars worth of cars and car parts every month. The auto industry already saw disruptions in its supply chain earlier this year when the Francis Scott Key bridge collapsed in Baltimore, hindering shipments through one of the country's largest ports. Companies that rely on importing car parts, such as AutoZone Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AZO#NYSE">AZO</a>) and O'Reilly Automotive Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ORLY#NASDAQ">ORLY</a>), could also see operations disrupted by the strike. Construction: Machinery and construction equipment account for more than $670 million in monthly imports through the dozen or so impacted ports, according to the Washington Post. Homebuilders such as DR Horton Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>), Lennar Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>) and others could see operations delayed if the strike is prolonged. Overall, the strike could lead to price increases and supply constraints across multiple sectors if it persists beyond a couple of weeks. In addition to the strike, flooding and storm damage from Hurricane Helene could also disrupt supply chain operations in North Carolina and other southeastern states. Keep Reading: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41122944/east-coast-dockworkers-strike-how-labor-dispute-impacts-economy-logistics-companies">East Coast Dockworkers Strike: How Labor Dispute Impacts Economy, Logistics Companies</a>
Photo: Engin Akyurt from Pixabay.<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41122944/east-coast-dockworkers-strike-how-labor-dispute-impacts-economy-logistics-companies"> </a><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41122944/east-coast-dockworkers-strike-how-labor-dispute-impacts-economy-logistics-companies"> </a>

Global

General

HEINY

ORLY

Beer Shortage Ahead? 3 Products That Will Be Most Impacted By Port Strike

The economy typically has three leading industries that investors can watch closely when trying to figure out the potential future of the stock market. Of course, consumer discretionary is a big part of this mix, as the United States economy is increasingly made up of consumer trends and debt. Following these consumer trends is the mortgage market, which is an extension of the real estate sector.
A third industry just as connected to the rest is the transportation sector, particularly the trucking industry, as it is called upon to deliver the products ordered based on higher consumer activity and demand.
Today, investors have a good idea of what the consumer sector is doing after consumer sentiment readings came in at their weakest since 2021, so now it is time to gauge the housing market.
This is where homebuilding stocks like KB Home (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kbh#NYSE">KBH</a>) become as important as ever, especially as the company just announced its latest set of quarterly earnings figures.
Investors can probably guess that the figures weren&#39;t that great based on the fact that the stock traded lower by 5.3% the day after announcing its quarterly earnings, but the implications for the rest of the stock market are just as important.
<h2>Why the Housing Industry Could Be in Trouble: KB Homes Stock Numbers Follow the Trend</h2>
Investors can gauge the market&#39;s feelings about a particular industry by comparing its average forward P/E valuations against the broader S&amp;P 500 index. In this case, those at Goldman Sachs believe the S&amp;P 500 will trade at about 18.0x forward P/E ratio for the next 12 months, the benchmark for investors to work with now.
On the other hand, the homebuilding industry trades at an average valuation of 11.5x forward P/E ratio. This is a discount of up to 36% from the market expectation, and typically, markets are willing to discount industries when they believe they are fundamentally set up to underperform the rest.
The underperformance may result from the average home price being up to 35% above what it was before the COVID-19 pandemic, pricing out many would-be homebuyers. The situation worsens when investors account for the current mortgage interest rates hovering near 6.5%.
The problem is that, despite recent interest rate cuts from the Federal Reserve (the Fed), most homes are still too expensive compared to the average salary today, so new demand won&#39;t come online for a while. Investors can see this trend reflected in the falling housing starts, home building permit numbers, and the mortgage market index hitting a 1996 low.
KB Home stock is not immune to this environment, so investors will notice a flat order backlog for the past 12 months in the company&#39;s earnings press release. In addition, the home-selling gross margin contracted down to 20.6% from 21.5% a year ago, signaling further weakness.
Speaking to demand and current sentiment for new homes, the overall cancellation rate came in at 15%, above the industry&#39;s 6% to 8% average, showing capitulation from the buyer side. The final blow came in the company&#39;s backlog, which totaled 5,724 this quarter compared to 7,008 one year ago.
This might have caused the stock&#39;s 5.3% down day despite reporting higher earnings per share (EPS) and revenue since these key performance indicators (KPIs) are ultimately more important for the future. However, KB Home is not alone in this trend; peers are suffering, too.
<h2>Wall Street Analysts Predict Downside for the Housing Industry</h2>
Here is what Wall Street analysts considered when deciding to keep their consensus price target for KB Home at $77.3 a share. This implies as much as a 6.6% downside from where the stock trades today despite the sell-off. Inside KB Home&#39;s financials, investors will notice that this shift in backlog inventory caused operating cash flows to crash.
Going from a net inflow of $608.7 million a year ago to $89.9 million this year means EPS is overstated today. Knowing that this is likely becoming an industry-wide issue, price targets on competitors like Toll Brothers Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tol#NYSE">TOL</a>) and D.R. Horton Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dhi#NYSE">DHI</a>) have also started to come down.
For Toll Brothers, Wall Street analysts expect the stock to drop to $145 a share, or 3.5% below today&#39;s price. More than that, it looks like bears are starting to gear up to oppose this company and the negative trends affecting the industry today, as Toll Brothers stock&#39;s short interest increased by 7.9% in the past month alone.
Looking over at D.R. Horton, the story doesn&#39;t improve. Wall Street has landed on a consensus price target of $183.3 a share for this homebuilder, which implies a downside of 2% from today&#39;s price. Bearish traders also picked up the pace on this name by increasing the stock&#39;s short interest by 12.5% over the past month.
<h2>Shift to Defensive Stocks as Housing Sector Shows Weakness</h2>
Based on the evidence, it&#39;s clear the housing market faces significant headwinds, with rising interest rates and inflated home prices limiting demand. Homebuilding stocks like KB Home, Toll Brothers, and D.R. Horton are showing signs of struggle, as seen in their lower backlogs, declining margins, and increasing short interest.
For investors, this suggests it may be wise to avoid the housing sector for now and consider shifting toward more defensive, less cyclical industries that are better positioned to weather the current economic environment.
The article &quot;<a href="https://www.marketbeat.com/stock-ideas/kb-home-slips-after-earnings-whats-next-for-homebuilders/">KB Home Slips After Earnings: What&#39;s Next for Homebuilders?</a>&quot; first appeared on MarketBeat.

Events

KB Home Slips After Earnings: What's Next for Homebuilders?

D.R. Horton (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) has outperformed the market over the past 5 years by 14.89% on an annualized basis producing an average annual return of 29.21%. Currently, D.R. Horton has a market capitalization of $61.27 billion. 
Buying $1000 In DHI: If an investor had bought $1000 of DHI stock 5 years ago, it would be worth $3,556.35 today based on a price of $187.93 for DHI at the time of writing.
<h3>D.R. Horton's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1727362820_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Here's How Much You Would Have Made Owning D.R. Horton Stock In The Last 5 Years

WIIM

D.R. Horton shares are trading lower in possible sympathy with KB Home, which fell after reporting flat orders.

Whales with a lot of money to spend have taken a noticeably bearish stance on D.R. Horton.
Looking at options history for D.R. Horton (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) we detected 9 trades.
If we consider the specifics of each trade, it is accurate to state that 44% of the investors opened trades with bullish expectations and 55% with bearish.
From the overall spotted trades, 7 are puts, for a total amount of $429,031 and 2, calls, for a total amount of $178,878.
<h3>Expected Price Movements</h3>
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $120.0 and $200.0 for D.R. Horton, spanning the last three months.
<h3>Volume &amp; Open Interest Trends</h3>
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for D.R. Horton's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of D.R. Horton's whale trades within a strike price range from $120.0 to $200.0 in the last 30 days. 
<h3>D.R. Horton 30-Day Option Volume &amp; Interest Snapshot</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1727203555_0.png" alt="Options Call Chart" />
<h3>Noteworthy Options Activity:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th style="text-align: right;">Open Interest</th>
<th style="text-align: right;">Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>DHI</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>01/16/26</td>
<td>$84.5</td>
<td>$79.8</td>
<td>$81.21</td>
<td>$120.00</td>
<td>$146.1K</td>
<td style="text-align: right;">381</td>
<td style="text-align: right;">18</td>
</tr>
<tr>
<td>DHI</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>11/15/24</td>
<td>$14.2</td>
<td>$13.9</td>
<td>$13.99</td>
<td>$200.00</td>
<td>$80.7K</td>
<td style="text-align: right;">576</td>
<td style="text-align: right;">292</td>
</tr>
<tr>
<td>DHI</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>11/15/24</td>
<td>$14.2</td>
<td>$13.9</td>
<td>$13.98</td>
<td>$200.00</td>
<td>$76.6K</td>
<td style="text-align: right;">576</td>
<td style="text-align: right;">234</td>
</tr>
<tr>
<td>DHI</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>11/15/24</td>
<td>$14.2</td>
<td>$13.9</td>
<td>$14.11</td>
<td>$200.00</td>
<td>$70.7K</td>
<td style="text-align: right;">576</td>
<td style="text-align: right;">101</td>
</tr>
<tr>
<td>DHI</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>11/15/24</td>
<td>$14.1</td>
<td>$13.9</td>
<td>$14.1</td>
<td>$200.00</td>
<td>$70.5K</td>
<td style="text-align: right;">576</td>
<td style="text-align: right;">151</td>
</tr>
</tbody>
</table>

<h3>About D.R. Horton</h3>
D.R. Horton is a leading homebuilder in the United States with operations in 118 markets across 33 states. D.R. Horton mainly builds single-family detached homes (over 90% of home sales revenue) and offers products to entry-level, move-up, luxury buyers, and active adults. The company offers homebuyers mortgage financing and title agency services through its financial services segment. D.R. Horton's headquarters are in Arlington, Texas, and it manages six regional segments across the United States.
In light of the recent options history for D.R. Horton, it's now appropriate to focus on the company itself. We aim to explore its current performance.
<h3>Where Is D.R. Horton Standing Right Now?</h3>
<ul>
<li>With a trading volume of 732,536, the price of DHI is down by -1.18%, reaching $191.19.</li>
<li>Current RSI values indicate that the stock is may be approaching overbought.</li>
<li>Next earnings report is scheduled for 35 days from now.</li>
</ul>
<h3>What Analysts Are Saying About D.R. Horton</h3>
2 market experts have recently issued ratings for this stock, with a consensus target price of $217.5.
Unusual Options Activity Detected: Smart Money on the Move
Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=Be8be9arja3be22bz20&amp;utm_source=benzinga-insights">Click here for access</a>. 
&#x2A; Maintaining their stance, an analyst from B of A Securities continues to hold a Buy rating for D.R. Horton, targeting a price of $215. 
&#x2A; An analyst from Wells Fargo has decided to maintain their Overweight rating on D.R. Horton, which currently sits at a price target of $220. 
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for D.R. Horton, <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a> gives you real-time options trades alerts.

Market Whales and Their Recent Bets on DHI Options

BLDR

GRBK

LGIH

LOVE

LSEA

ROCK

Shares of housing-related stocks are trading higher after the Fed policy decision to cut rates by 50 basis points, which could help curb housing unaffordability and increase demand.

This whale alert can help traders discover the next big trading opportunities.
Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.
Traders often look for circumstances when the market estimation of an option diverges away from its normal worth. Abnormal amounts of trading activity could push option prices to hyperbolic or underperforming levels. 
Here's the list of options activity happening in today's session: 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>TSLA</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>09/20/24</td>
<td>$240.00</td>
<td>$36.3K</td>
<td>8.4K</td>
<td>63.5K</td>
</tr>
<tr>
<td>NIO</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>04/17/25</td>
<td>$6.00</td>
<td>$99.5K</td>
<td>2.3K</td>
<td>17.4K</td>
</tr>
<tr>
<td>JD</td>
<td>CALL</td>
<td>SWEEP</td>
<td>NEUTRAL</td>
<td>12/20/24</td>
<td>$30.00</td>
<td>$36.4K</td>
<td>35.1K</td>
<td>7.4K</td>
</tr>
<tr>
<td>DASH</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$145.00</td>
<td>$67.5K</td>
<td>1.0K</td>
<td>205</td>
</tr>
<tr>
<td>CAVA</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>10/18/24</td>
<td>$125.00</td>
<td>$35.3K</td>
<td>1.5K</td>
<td>152</td>
</tr>
<tr>
<td>DHI</td>
<td>PUT</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>10/18/24</td>
<td>$190.00</td>
<td>$39.0K</td>
<td>260</td>
<td>146</td>
</tr>
<tr>
<td>CHWY</td>
<td>CALL</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>01/17/25</td>
<td>$20.00</td>
<td>$120.0K</td>
<td>4.2K</td>
<td>104</td>
</tr>
<tr>
<td>DRI</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>10/18/24</td>
<td>$150.00</td>
<td>$242.2K</td>
<td>96</td>
<td>101</td>
</tr>
<tr>
<td>HD</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>11/15/24</td>
<td>$365.00</td>
<td>$32.7K</td>
<td>612</td>
<td>72</td>
</tr>
<tr>
<td>CVNA</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>11/15/24</td>
<td>$180.00</td>
<td>$27.5K</td>
<td>67</td>
<td>21</td>
</tr>
</tbody>
</table>

<h2>Explanation</h2>
These bullet-by-bullet explanations have been constructed using the accompanying table. 
• For TSLA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), we notice a put option sweep that happens to be bearish, expiring in 1 day(s) on September 20, 2024. This event was a transfer of 166 contract(s) at a $240.00 strike. This particular put needed to be split into 6 different trades to become filled. The total cost received by the writing party (or parties) was $36.3K, with a price of $219.0 per contract. There were 8451 open contracts at this strike prior to today, and today 63555 contract(s) were bought and sold. 
• For NIO (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>), we notice a call option sweep that happens to be bullish, expiring in 210 day(s) on April 17, 2025. This event was a transfer of 1005 contract(s) at a $6.00 strike. This particular call needed to be split into 6 different trades to become filled. The total cost received by the writing party (or parties) was $99.5K, with a price of $99.0 per contract. There were 2329 open contracts at this strike prior to today, and today 17419 contract(s) were bought and sold. 
• For JD (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>), we notice a call option sweep that happens to be neutral, expiring in 92 day(s) on December 20, 2024. This event was a transfer of 200 contract(s) at a $30.00 strike. This particular call needed to be split into 6 different trades to become filled. The total cost received by the writing party (or parties) was $36.4K, with a price of $182.0 per contract. There were 35114 open contracts at this strike prior to today, and today 7420 contract(s) were bought and sold. 
• Regarding DASH (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DASH#NASDAQ">DASH</a>), we observe a call option sweep with bearish sentiment. It expires in 120 day(s) on January 17, 2025. Parties traded 75 contract(s) at a $145.00 strike. This particular call needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $67.5K, with a price of $900.0 per contract. There were 1006 open contracts at this strike prior to today, and today 205 contract(s) were bought and sold. 
• Regarding CAVA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAVA#NYSE">CAVA</a>), we observe a call option sweep with bullish sentiment. It expires in 29 day(s) on October 18, 2024. Parties traded 52 contract(s) at a $125.00 strike. This particular call needed to be split into 17 different trades to become filled. The total cost received by the writing party (or parties) was $35.3K, with a price of $680.0 per contract. There were 1565 open contracts at this strike prior to today, and today 152 contract(s) were bought and sold. 
• For DHI (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>), we notice a put option trade that happens to be neutral, expiring in 29 day(s) on October 18, 2024. This event was a transfer of 100 contract(s) at a $190.00 strike. The total cost received by the writing party (or parties) was $39.0K, with a price of $390.0 per contract. There were 260 open contracts at this strike prior to today, and today 146 contract(s) were bought and sold. 
• Regarding CHWY (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHWY#NYSE">CHWY</a>), we observe a call option trade with neutral sentiment. It expires in 120 day(s) on January 17, 2025. Parties traded 100 contract(s) at a $20.00 strike. The total cost received by the writing party (or parties) was $120.0K, with a price of $1200.0 per contract. There were 4219 open contracts at this strike prior to today, and today 104 contract(s) were bought and sold. 
• For DRI (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>), we notice a call option sweep that happens to be bullish, expiring in 29 day(s) on October 18, 2024. This event was a transfer of 100 contract(s) at a $150.00 strike. This particular call needed to be split into 4 different trades to become filled. The total cost received by the writing party (or parties) was $242.2K, with a price of $2430.0 per contract. There were 96 open contracts at this strike prior to today, and today 101 contract(s) were bought and sold. 
• For HD (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>), we notice a call option trade that happens to be bearish, expiring in 57 day(s) on November 15, 2024. This event was a transfer of 10 contract(s) at a $365.00 strike. The total cost received by the writing party (or parties) was $32.7K, with a price of $3275.0 per contract. There were 612 open contracts at this strike prior to today, and today 72 contract(s) were bought and sold. 
• For CVNA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVNA#NYSE">CVNA</a>), we notice a put option trade that happens to be bearish, expiring in 57 day(s) on November 15, 2024. This event was a transfer of 11 contract(s) at a $180.00 strike. The total cost received by the writing party (or parties) was $27.5K, with a price of $2505.0 per contract. There were 67 open contracts at this strike prior to today, and today 21 contract(s) were bought and sold. 
Options Alert Terminology 
 - Call Contracts: The right to buy shares as indicated in the contract. 
 - Put Contracts: The right to sell shares as indicated in the contract. 
 - Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it. 
 - Premium/Option Price: The price of the contract. 
For more information, visit our <a href="https://pro.benzinga.com/blog/how-to-understand-option-alerts/">Guide to Understanding Options Alerts</a> or read <a href="https://www.benzinga.com/markets/options">more about unusual options activity</a>. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

CAVA

CHWY

CVNA

DASH

TSLA

10 Consumer Discretionary Stocks With Whale Alerts In Today's Session

B of A Securities analyst Rafe Jadrosich maintains D.R. Horton (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) with a Buy and raises the price target from $196 to $215.

B of A Securities Maintains Buy on D.R. Horton, Raises Price Target to $215

New construction on single-family homes in the U.S. <a href="https://www.benzinga.com/news/23/06/32926608/us-housing-starts-skyrocket-to-highest-level-since-2016-sign-of-strong-market-optimism-among-builder">jumped in August</a> as mortgage rates trend downward and the Federal Reserve is expected to cut rates on Wednesday for the first time in four years.
Single-family housing starts last month came in at an annualized rate of 992,000 units, up 15.8% from a revised figure of 857,000 for July, according to Commerce Department data released on Wednesday.
Starts for all privately-owned housing in August totaled an annualized rate of 1.356 million units, up 9.6% from the July revised estimate of 1.237 million and up 3.9% from the August 2023 rate of 1.305 million.
Single-family housing completions reached an annualized rate of 1.029 million in August, registering a 5.6% decline from July&#8217;s revised rate of 1.09 million.
Completions for all privately-owned homes in August were at a seasonally adjusted annual rate of 1.788 million, up 9.2% from the July revised estimate of 1.637 million and 30.2% above the July 2023 rate of 1.373 million.
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37845734/housing-starts-rebound-lift-homebuilder-stocks-sign-of-economic-resilience">Housing Starts Rebound, Lift Homebuilder Stocks: Sign Of Economic Resilience</a>
Building permits also rose last month, Commerce Department data showed.
Single-family authorizations in August were at a rate of 967,000, up 2.8% from the revised July figure of 941,000.
Privately-owned housing units authorized by building permits in August were at a seasonally adjusted annual rate of 1,475,000. That&#8217;s up 4.9% from the July revised rate of 1.406 million but below the August 2023 rate of 1.578 million.
The average rate for <a href="https://www.benzinga.com/news/24/09/40921345/mortgage-rates-drop-to-2-year-low-refinancing-hits-fastest-pace-since-2022-rocket-lendingtree-among">30-year mortgages</a> fell 14 basis points in the week ended Sept. 13 to 6.15%, marking the lowest rate since September 2022, according to the Mortgage Bankers Association.
The Federal Reserve is <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40921827/fed-decision-is-here-5-things-investors-need-to-know-ahead-of-wednesdays-pivotal-in">expected to lower</a> its key interest rate ranging from 5% to 5.25% on Wednesday by either 25 or 50 basis points, signifying its first rate decline in four years.
Price Action: Homebuilders slid into Wednesday&#8217;s mid-day trading.
<ul>
<li>D.R. Horton, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) slipped 0.86% to $193.67 </li>
<li>Pulte Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PHM#NYSE">PHM</a>) declined 0.41% to $139.88</li>
<li>NVR, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVR#NYSE">NVR</a>) went down 0.34% to $9,542.99</li>
</ul>
Exchange-traded funds that hold homebuilder stocks showed gains and losses.
<ul>
<li>IShares U.S. Home Construction ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITB#BATS">ITB</a>) declined 0.57%</li>
<li>Direxion Daily Homebuilders &amp; Supplies Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NAIL#NYSE">NAIL</a>) fell 1.8%</li>
<li>Pacer US Cash Cows Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BUL#NYSE">BUL</a>) gained 0.2%</li>
</ul>
Read Now:
<ul>
<li>&#8216;<a href="https://www.benzinga.com/real-estate/24/08/40666981/the-time-has-come-to-adjust-cheaper-mortgage-rates-could-be-just-weeks-away-but-it-all-hinges-on-thi">The Time Has Come to Adjust&#8217; — Cheaper Mortgage Rates Could Be Just Weeks Away, But It All Hinges On This Data</a></li>
</ul>
Image: Shutterstock

ETFs

NAIL

Single-Family Housing Starts Are Up As Mortgage Rates Decline, Fed Eyes Lower Rates

Homebuilder and building product stocks <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40882613/builders-first-source-other-homebuilder-stocks-rise-with-catalysts-such-as-mortgage">could see an upward trend</a> if the Federal Reserve cuts the key interest rate on Wednesday, based on historical performance, according to a major U.S. bank.
The Fed is expected to lower rates by either 25 or 50 basis points, marking the first change since July 2023 when it raised the rate to a range of 5% to 5.25%.
&#8220;Builders and building product stocks have outperformed in anticipation of rate cuts,&#8221; BofA Securities said in a note on Tuesday.
&#8220;Lower rates would benefit home demand.&#8221;
Homebuilder and building product stocks have rallied since early July as 30-year mortgage rates have fallen from 7% to roughly 6.2%, boosting new home demand and spending on home improvements, BofA said.
&#8220;In our view, the stock performance has been stronger than the improvement in underlying fundamentals as investors look through near-term weakness to a 2025 recovery fueled by lower mortgage rates and pent-up demand,&#8221; the note stated.
Read Also: <a href="https://www.benzinga.com/markets/equities/24/07/39988310/homebuilder-stocks-rally-to-record-highs-on-rate-cut-frenzy-but-housing-sales-still-struggle">Homebuilder Stocks Rally To Record Highs On Rate-Cut Frenzy But Housing Sales Still Struggle</a>
&#8220;Housing sector outperformance ahead of rate cuts is consistent with prior cycles, but the magnitude and valuations are higher this time around. Stock performance following the first cut is more mixed although usually positive for homebuilders.&#8221;
BofA noted that homebuilders outperformed the S&amp;P 500 in the three months before three of the last five initial rate cuts, and building products outperformed in four of the last five.
In the last three months, homebuilder stocks have gone up 26% and building product shares have risen 13%, compared to the S&amp;P 500&#8217;s 2% uptick over the same period, BofA said.
&#8220;Assuming the Fed starts to cut rates in September, homebuilder and building product stocks will be trading at a higher valuation than going into any of the last five periods when the Fed started to cut.&#8221;
BofA also pointed out that homebuilders and building products typically underperform the S&amp;P 500 ahead of a recession but outperform it during and after a recession.
Price Action: Homebuilder stocks traded higher on Tuesday.
<ul>
<li>Pulte Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PHM#NYSE">PHM</a>) rose 0.04% to $140.46.</li>
<li>D.R. Horton, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) was up 0.3% to $195.37.</li>
<li>Lennar Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>) gained 1.1% to $189.36.</li>
</ul>
Building products also saw gains and losses.
<ul>
<li>Antelope Enterprise Holdings Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AEHL#NASDAQ">AEHL</a>) rose 2.94% to $1.05.</li>
<li>Interface, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TILE#NASDAQ">TILE</a>) dropped 1.37% to $18.76.</li>
<li>Technoglass Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGLS#NYSE">TGLS</a>) went up 1.12% to $67.51.</li>
</ul>
The S&amp;P 500, which is tracked by SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), was up 0.02% to 5,634.58.
Read Now:
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/08/40474111/toll-brothers-q3-earnings-revenue-beat-eps-beat-homes-delivered-up-11-backlog-down-10-momentum-into">Toll Brothers Q3 Earnings: Revenue Beat, EPS Beat, Homes Delivered Up 11%, Backlog Down 10%, Momentum Into August And More</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

AEHL

TGLS

TILE

Homebuilder Stocks Outperform Ahead Of Potential Rate Cuts — But What's Next?

Launched on 01/07/2014, the First Trust Rising Dividend Achievers ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rdvy#NASDAQ">RDVY</a>) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by First Trust Advisors. It has amassed assets over $11.71 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
<h2>Why Large Cap Value</h2>
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
<h2>Costs</h2>
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.49%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.83%.
<h2>Sector Exposure and Top Holdings</h2>
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund&#39;s holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 42% of the portfolio. Information Technology and Consumer Discretionary round out the top three.
Looking at individual holdings, D.r. Horton, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dhi#NYSE">DHI</a>) accounts for about 2.41% of total assets, followed by Mueller Industries, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mli#NYSE">MLI</a>) and Aflac Incorporated (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/afl#NYSE">AFL</a>).
The top 10 holdings account for about 22.38% of total assets under management.
<h2>Performance and Risk</h2>
RDVY seeks to match the performance of the NASDAQ US Rising Dividend Achievers Index before fees and expenses. The NASDAQ US Rising Dividend Achievers Index is designed to provide access to a diversified portfolio of companies with a history of paying dividends.
The ETF has added roughly 12.45% so far this year and was up about 23.75% in the last one year (as of 09/17/2024). In the past 52-week period, it has traded between $43.44 and $58.75.
The ETF has a beta of 1.11 and standard deviation of 19.70% for the trailing three-year period, making it a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
First Trust Rising Dividend Achievers ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, RDVY is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Schwab U.S. Dividend Equity ETF (ARCA:SCHD) and the Vanguard Value ETF (ARCA:VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $60.60 billion in assets, Vanguard Value ETF has $126.51 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.
<h2>Bottom-Line</h2>
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
<a href="https://www.zacks.com/stock/news/2336911/should-first-trust-rising-dividend-achievers-etf-rdvy-be-on-your-investing-radar?cid=CS-BENZ-FT-style_box_etf-2336911">To read this article on Zacks.com click here.</a>

Dividends

RDVY

SCHD

Should First Trust Rising Dividend Achievers ETF Be on Your Investing Radar?

D.R. Horton's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) short percent of float has fallen 7.32% since its last report. The company recently reported that it has 4.90 million shares sold short, which is 1.9% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.46 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>D.R. Horton Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1726500623_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for D.R. Horton has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing D.R. Horton's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, D.R. Horton's peer group average for short interest as a percentage of float is 6.04%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Looking Into D.R. Horton's Recent Short Interest

Shares of housing stocks and homebuilders are trading higher. The sector may be on watch amid a drop in yields and as investors await rate cuts.

D.R. Horton (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) has outperformed the market over the past 5 years by 16.97% on an annualized basis producing an average annual return of 29.95%. Currently, D.R. Horton has a market capitalization of $59.72 billion. 
Buying $100 In DHI: If an investor had bought $100 of DHI stock 5 years ago, it would be worth $368.02 today based on a price of $183.16 for DHI at the time of writing.
<h3>D.R. Horton's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1725555611_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$100 Invested In D.R. Horton 5 Years Ago Would Be Worth This Much Today

The U.S. housing market has been tumultuous <a target="_blank" href="https://www.benzinga.com/economics/24/08/40259694/housing-inches-toward-buyers-market-as-mortgage-rates-fall-but-with-one-caveat-report" rel="noreferrer noopener">due to persistent interest rate hikes</a>.
However, an upward revision of<a href="https://www.benzinga.com/news/large-cap/24/08/40639345/traders-scale-back-bets-on-50-basis-point-september-rate-cut-ahead-of-fridays-key-fed-inflation-ga"> U.S. gross domestic product growth</a> in the second quarter has led speculators to reconsider their bets on a substantial 50-basis-point&nbsp;<a href="https://www.benzinga.com/markets/equities/24/08/40627044/us-dollar-oil-prices-tech-stocks-rise-as-gdp-roars-by-3-in-q2-bonds-yen-slip-as-bets-for-large-r" target="_blank" rel="noreferrer noopener">rate cut next month.</a>
With mortgage rates expected to decrease, experts advise homebuyers to act swiftly to secure the best deals before the opportunity closes.
Looking ahead, several dynamic trends are set to shape the housing market.
According to a <a href="https://www.noradarealestate.com/blog/housing-market-forecast-for-next-5-years/" target="_blank" rel="noreferrer noopener">note</a> by Norada Real Estate Investments, the market will remain strong over the next five years, though it will experience some dramatic shifts. Home prices are projected to continue rising, but at a slower pace than in recent years, offering a more gradual increase. While the supply of homes is expected to grow, addressing the previous shortage should ease the inventory crunch that has driven prices up.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/08/40230627/a-ton-of-landlords-are-about-to-raise-rents-this-year" rel="noreferrer noopener">A Ton Of Landlords Are About To Raise Rents This Year</a>
Despite the Federal Reserve&#8217;s past rate hikes raising borrowing costs and dampening buyer enthusiasm, a gradual rate decline could rekindle demand and revitalize the market.
However, competition will remain fierce due to robust job growth, population expansion, and limited land availability.
<h3 class="wp-block-heading">2024 Forecast</h3>
The U.S. housing market is anticipated to slow, with home prices either stabilizing or seeing a slight decline. Zillow&#8217;s latest forecast for 2024 projects a 1.8% national increase in home values, indicating a period of market stability, Norada Real Estate Investments added.
Stock Opportunities
As home prices are expected to remain stable or increase modestly, homebuilders are likely to benefit from sustained demand and favorable conditions. This stability should support their revenue growth through ongoing construction and sales.
According to a June report by the<a href="https://www.nahb.org/blog/2024/06/pro-builder-housing-giants"> National Association of Home Builders</a>, the top three homebuilders by revenue, closings, and home types are:
<ul>
<li>D.R. Horton, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>): DHI stock has surged over 58% in the past year. Wells Fargo recently raised its <a href="https://www.benzinga.com/quote/DHI/analyst-ratings" target="_blank" rel="noreferrer noopener">price forecast </a>to $220 from $210 while maintaining an Overweight rating. Investors can consider the iShares U.S. Home Construction ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITB#BATS">ITB</a>) for exposure.</li>
<li>Lennar Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>): LEN stock has risen more than 52% in the past year. Wells Fargo increased its price forecast to $195 from $185, also maintaining an <a href="https://www.benzinga.com/quote/LEN/analyst-ratings" target="_blank" rel="noreferrer noopener">Overweight </a>rating. The AdvisorShares Gerber Kawasaki ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GK#NYSE">GK</a>) offers a way to invest in Lennar.</li>
<li>Toll Brothers, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TOL#NYSE">TOL</a>): TOL stock has jumped over 75% in the past year. Wedbush raised its<a href="https://www.benzinga.com/quote/TOL/analyst-ratings" target="_blank" rel="noreferrer noopener"> price forecast</a> to $148 from $120, keeping a Neutral rating. The Invesco Dorsey Wright Consumer Cyclicals Momentum ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEZ#NASDAQ">PEZ</a>) provides investment exposure.</li>
</ul>
Overall, the U.S. housing market is poised for stability this year, with modest price increases and benefits for homebuilders. Prices are projected to rise 3-5% annually through 2029, while mortgage rates are expected to stabilize above pre-pandemic levels, Norada reported. This evolving landscape, marked by a shift towards suburban and rural demand and technological advancements, will require buyers and investors to remain informed and adaptable, the report added.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/24/08/40649198/housing-market-in-biggest-bubble-of-all-time-warns-reventure-ceo-this-situation-is-not-sustainable" target="_blank" rel="noreferrer noopener">Housing Market In &#8216;Biggest Bubble Of All Time,&#8217; Warns Reventure CEO: &#8216;This Situation Is Not Sustainable&#8217;</a></li>
</ul>

Macro Economic Events

PowerShares Dynamicnsumer Discretionary Sector Portfolio

Rate Cuts Coming: Is It The Perfect Time For Homebuyers To Strike Big Deals?

Top 10 S&P 500 stock performers of Q3

D.R. Horton: History Says Not To Chase This Rally

Top 50 High Quality Dividend Stocks - September 2024 Results

NAIL: Top 10 Holdings Remain Attractively Valued Relative To The S&P 500

Stocks are volatile this morning, as the initial pop from this morning's outstanding jobs report wears off.

Stocks Choppy Despite 'Soft Landing' Signals

SA Asks: Which stocks are best positioned for more rate cuts?

Wells Fargo analyst Sam Reid maintained a Buy rating on DR Horton (DHI – Research Report) today and set a price target of $220.00. The company's sh...

Wells Fargo Sticks to Its Buy Rating for DR Horton (DHI)

A look at real estate stocks after housing inflation moderates, mortgages rise

D.R. Horton: Take Part In The Real Estate Boom, Upon A Correction

DR Horton (DHI) Receives a Buy from Wells Fargo

AAPL

AGNC

ALLE

AMAT

AMZN

CBRE

COMP

CTAS

ERIE

FAST

GRMN

HOUS

INTC

INVH

JKHY

KLAC

LECO

LRCX

MKTX

MPWR

MSCI

MSFT

NCLH

NTES

NVDA

NXDT

NXPI

ODFL

OPEN

PARA

PAYX

PFSI

PLTR

POOL

QCOM

RACE

RDFN

ROST

SBUX

SONY

SPXU

SPYG

TSCO

UPRO

UWMC

XLRE

Screenshot 2024-04-23 at 6.40.26 PM

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

Emerging Markets

DLMI

Diamond Lake Minerals (OTC: DLMI) And BOXABL Team Up To Bring Affordable Housing To The Masses And Digital Tokens To Investors

Press Releases

D.R. Horton, Inc., America's Builder, Reports Fiscal 2024 Second Quarter Earnings and Declares Quarterly Dividend of $0.30 Per Share

D.R. Horton, Inc. Announces the Passing of Company Founder and Chairman, Donald R. Horton

D.R. Horton, Inc. to Release 2024 Third Quarter Earnings on July 18, 2024

Ferguson Enterprises Inc. Appoints Two New Directors and Announces Annual Meeting Date and Shareholder Proposal Deadlines

Ferguson Reports Third Quarter Results

D.R. Horton, Inc., America's Builder, Reports Fiscal 2024 Third Quarter Earnings and Declares Quarterly Dividend of $0.30 Per Share

D.R. Horton, Inc. Announces Pricing of $700 Million of 5.000% Senior Notes Due 2034

D.R. Horton, Inc. Appoints Three New Independent Directors

D.R. Horton, Inc. to Release 2024 Fourth Quarter and Fiscal Year-End Earnings on October 29, 2024

Comments

D.R. Horton

Notizie

Ultime notizie per D.R. Horton (NYSE:DHI) Azioni

Le persone guardano anche

Notizie

PARTNER/COLLABORATORE

BENZINGA NEL MONDO