D.R. Horton, Inc. (NYSE:DHI)

CAPS Rating: 1 out of 5

The Company is a homebuilding company, which constructs and sells single-family homes through its operating divisions in 25 states and 74 metropolitan markets of the United States.

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Player Avatar dcrednek (79.52) Submitted: 3/1/2011 11:40:48 AM : Outperform Start Price: $11.41 DHI Score: +49.12

Homebuilders have been decimated since the bursting of the credit and real estate bubbles. But take a closer look --- DHI has a strong balance sheet, is cash flow positive, and can modify the scale of its operations to match new home construction demand (it's not a financier of buyers, outsources most of its construction personnel, doesn't hold warehouses filled with materials). One of it's major exposures is to the acquisition cost of land.

I think that it's time to take a good look at this stock. Not all homebuilders present a compelling investment thesis, but I think this one has more upside potential than downside risk right now.

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