Are Wall Street Analysts Predicting D.R. Horton Stock Will Climb or Sink?

D.R. Horton, Inc. (DHI) operates as a homebuilding company. Valued at $42.3 billion by market cap, the company constructs and sells single-family homes designed primarily for the entry-level and move-up markets. DHI also provides mortgage financing and title agency services to homebuyers.

Shares of this leading homebuilder have underperformed the broader market over the past year. DHI has declined 1.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.4%. In 2026, DHI stock is up 4.9%, compared to the SPX’s 13.3% rise on a YTD basis. 

Narrowing the focus, DHI’s outperformance is apparent compared to the iShares U.S. Home Construction ETF (ITB). The exchange-traded fund has declined about 2.1% over the past year. However, the ETF’s 5% returns on a YTD basis outshine the stock’s gains over the same time frame.

DHI underperformed as affordability pressures and cautious buyers weighed on demand. Orders were flat YoY and cancellations rose to 20% since last year, reflecting ongoing consumer hesitancy.

On Jul. 21, DHI shares closed down marginally after reporting its Q3 results. Its EPS of $3.20 exceeded Wall Street expectations of $2.99. The company’s revenue was $9.23 billion, topping Wall Street forecasts of $9.18 billion. DHI expects full-year revenue in the range of $32.5 billion to $33 billion.

For the current fiscal year, ending in September, analysts expect DHI’s EPS to fall 9.5% to $10.47 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.

Among the 20 analysts covering DHI stock, the consensus is a “Hold.” That’s based on five “Strong Buy” ratings, 14 “Holds,” and one “Strong Sell.”

This configuration is more bullish than two months ago, with four analysts suggesting a “Strong Buy,” and two advising a “Strong Sell.”

On Aug. 5, Sam Reid from Wells Fargo & Company (WFC) assigned a “Hold” rating to DHI, with a price target of $155, implying a potential upside of 2.6% from current levels. 

The mean price target of $163.78 represents an 8.4% premium to DHI’s current price levels. The Street-high price target of $206 suggests a notable upside potential of 36.4%.