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