5 Construction Stocks to Buy Now

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

Number of Hedge Fund Holders: 51

D.R. Horton, Inc. (NYSE:DHI) is a homebuilding company based in the United States. With a market cap of $29.85 billion and a wide range of products and services, it is the largest homebuilder in the country. In 2021, D.R. Horton, Inc. (NYSE:DHI) saw its net income increase to $4.2 billion, a 76% increase year on year, while revenue saw a year-on-year jump of 37% to reach $27.8 billion. EPS for the fourth quarter of 2021 came in at $3.17, beating market estimates by $0.37. D.R. Horton, Inc. (NYSE:DHI) continues to dominate and grow its market share, with the main drivers for growth including diversification in products and geographic expansion.

Investors realize the upward trajectory enjoyed by construction companies such as D.R. Horton, Inc. (NYSE:DHI), as 51 hedge funds reported ownership of stakes in the company at the end of the third quarter of 2021, up from 45 in the quarter before.

On February 3, Barclays analyst Matthew Bouley maintained an ‘Overweight’ rating on D.R. Horton, Inc. (NYSE:DHI) stock, lowering the price target to $125 from $140. He holds that the company’s strength in production and the availability of inventory homes should result in an upward trend for the volume of sales and pricing power heading into the spring selling season, as demand outstrips supply in the home-construction industry.