Analyst Explains Why She’s Buying DR Horton (DHI) – ‘These Stocks Are Going to Fly’

D.R. Horton, Inc. (NYSE:DHI) is one of the 10 Buzzing Stocks to Watch as AI Trade Makes a Comebacks.

Stephanie Link, CIO at Hightower, explained in a recent program on CNBC why she’s buying DR Horton Inc (NYSE:DHI) shares despite headwinds in the housing industry. Potential rate cuts in the upcoming months is one of the possible catalysts for housing stocks, she said.

“Because it’s cheap at 11 times forward estimates, I think the guidance that they gave with regards to margins and deliveries has been not kitchen synced, but it has come down to reasonable levels. I am intrigued with the interest rate move. We talked about the yields earlier today — they’re at 6-week lows. The 30-year fix is still high at 6.8% for mortgage. That has to come down, but I do think you will see that actually start to come down, and maybe, just maybe, we do get a rate cut in the fall. These stocks are going to fly.”

Photo by Kaleidico on Unsplash

Parnassus Core Equity Fund stated the following regarding D.R. Horton, Inc. (NYSE:DHI) in its Q1 2025 investor letter:

“We also repositioned to increase our underweight in Consumer Discretionary by selling homebuilder D.R. Horton, Inc. (NYSE:DHI) amid uncertainty and increasing risk to housing fundamentals. D.R. Horton’s cycle risk is now more accurately priced in. Additionally, housing demand prospects in the areas where the company operates remain uncertain.”

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Disclosure: None. This article is originally published at Insider Monkey.