Jim Cramer Says D.R. Horton Needs Lower Rates “To Get Business Reignited”

D.R. Horton, Inc. (NYSE:DHI) is one of the stocks Jim Cramer recently talked about. Cramer discussed the company’s woes, as he remarked:

“As earnings season unfolds, I notice more and more signs of real economy companies struggling… Look at today as a reason why you gotta be worried. First, the nation’s largest home builder company, called D.R. Horton, they missed expectations for home building, revenues, deliveries, and earnings per share, with the company increasingly having to offer incentives to get sales across the finish line. Now, Horton also gave soft revenue guidance for their 2026 fiscal year, even though they’re projecting better-than-expected deliveries. Basically, management thinks they’re going to have to compromise on price to sell homes that they’re building. And Horton’s guidance for the current quarter was particularly weak, which is why the stock got clobbered today. Remember, housing, more than any other industry, is hostage to interest rates. Horton needs lower rates, and it needs them now to get business reignited.”

Photo by Adam Nowakowski on Unsplash

D.R. Horton, Inc. (NYSE:DHI) builds and sells single-family and multi-family homes across the U.S.

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