5 Most Undervalued High Quality Stocks to Buy Now

In this piece we will look at the 5 Most Undervalued High Quality Stocks to Buy Now. Please visit 10 Most Undervalued High Quality Stocks to Buy Now if you’d like to see an extended list and how we came up with the list of Most Undervalued High Quality Stocks to Buy Now.

​5. D.R. Horton, Inc. (NYSE:DHI)

Forward Price to Earnings Ratio: 13.51

Number of Hedge Fund Holders: 58

​D.R. Horton, Inc. (NYSE:DHI) currently trades at a forward price to earnings ratio of 13.51, which is below the sector median of 15.35. The stock also ranks among our Most Undervalued High Quality Stocks to Buy Now.

​Recently, on April 22, Truist Securities raised its price target on D.R. Horton, Inc. (NYSE:DHI) from $140 to $150, while maintaining a Hold rating on the shares. The rating follows the company’s fiscal Q2 2026 earnings, released on April 21. During the quarter, D.R. Horton posted $7.56 billion in revenue, down 2.27% year-over-year and below expectations by $44.79 million. On the positive side, the GAAP EPS of $2.24 topped the consensus by $0.10.

​The analyst at Truist noted that the company delivered 11% growth in new orders, which matched community count growth for the quarter. The firm finds this to be solid growth considering the macroeconomic backdrop.

Moreover, the stock responded positively, rising roughly 6% following the earnings release, a notable move given that the S&P 500 declined 0.5% on the same day. However, the firm also highlighted demand softness, noting its data suggested activity tapered off in March. The company pushed back on this, indicating demand remained consistent with typical seasonal patterns.

D.R. Horton, Inc. (NYSE:DHI) is a Texas-based homebuilding company that develops land, constructs, and sells single-family and multi-family homes.