14 Stocks Jim Cramer Talked About

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

Number of Hedge Fund Holdings: 64

Homebuilding giant D.R. Horton, Inc. (NYSE:DHI)’s shares are up by 8.5% over the past year and by 9% year-to-date. January has been a busy month for the firm after it reported its fiscal first-quarter earnings. The results saw D.R. Horton, Inc. (NYSE:DHI) report $6.89 billion in revenue and $2.03 in profit-per-share to beat analyst revenue and profit estimates of $6.60 billion and $2.03. Following the earnings, several analysts discussed D.R. Horton, Inc. (NYSE:DHI)’s stock. For instance, Evercore ISI slightly increased the share price target to $169 from $167 and kept an In Line rating on the shares. The financial firm noted that the homebuilding company was in touch with the Trump administration regarding housing policy. UBS raised D.R. Horton, Inc. (NYSE:DHI)’s share price target to $193 from $191 and kept a Buy rating as it increased the valuation multiple. Cramer discussed the firm in the context of interest rates:

“All I’m saying is this that, what happens if someone from Denmark caves? Or they just say, you know, let’s have a deal, let’s come up with something good? And then you and I are going to be sitting here and saying, why were we not telling people to buy Horton? Rates are back down, big homebuilder.

“. . .very strange, was that Horton was up earlier, the big homebuilder. . .and Horton, don’t get your hopes up the rates are coming down and it’s time to buy Horton. It’s really too bad.

“You need a rate cut to buy a company that’s trading at 13 times future earnings.

“I’m not calling a bottom here but it’s important to point out that DR Horton, the big homebuilder, which by the way is the one that has the most inexpensive homes, 360,000 average closing price. It’s a sign again that they don’t sell homes in Greenland. We know that mortgage rates are creeping higher, but it has not hurt this company that much. It was down three. Again, not a speculative situation, an inexpensive stock.”

Meridian Hedged Equity Fund discussed D.R. Horton, Inc. (NYSE:DHI) in its third quarter 2025 investor letter released in December:

“D.R. Horton, Inc. (NYSE:DHI) is the largest homebuilder in the United States by volume, with a strategic focus on the entry-level and first-time buyer segments. Our investment thesis centers on the company’s ability to leverage its unmatched scale and production-oriented model to deliver affordable homes, a compelling value proposition in a market challenged by affordability. Its extensive presence across numerous high-growth Sunbelt markets solidifies its leadership position. The company’s operational efficiency drives strong cash flow generation, enabling significant capital returns to shareholders through buybacks while maintaining a ‘land-light’ strategy that reduces balance sheet risk. The stock outperformed during the quarter after the company reported surprising results across several metrics, including stronger-than-expected home closings and new orders (flat versus an expected decline), resilient gross margins that beat prior guidance, and a 2% year-over year decline in construction costs. Management also raised share repurchase guidance, signaling confidence in future cash flows.”