Jim Cramer Discusses D.R. Horton and Says Calling Home Builders “Disappointing” Is Too Positive

D.R. Horton, Inc. (NYSE:DHI) is one of the stocks on Jim Cramer’s game plan for this week. Cramer started his game plan with the stock and remarked:

“D.R. Horton, the giant home builder, puts its numbers up. And so far, the home builders, look, to call them disappointing is too positive. That’s the bad news, though. The good news is that we’re beginning to see green shoots in the housing sector. Pricing has come down. Mortgage rates have come down. There’s even talk about allowing you to use your 401K to buy a home without paying any kind of penalty. Alright, that’s up to the president. We’ll see how serious he is about this potentially groundbreaking plan. It would certainly send the stock of D.R. Horton much higher, along with the rest of the home builders.”

A stock market chart. Photo by Arturo A on Pexels

D.R. Horton, Inc. (NYSE:DHI) builds and sells single-family and multi-family homes across the U.S. Meridian Hedged Equity Fund stated the following regarding D.R. Horton, Inc. (NYSE:DHI) in its third quarter 2025 investor letter:

“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.”

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