EARN25

Put Traders Zero in on Construction Name

D.R. Horton offers an extremely low forward price-earnings ratio of 5.83

facebook X logo linkedin


D.R. Horton, Inc. (NYSE: DHI) is an American home construction company with operations in 105 markets across 33 states. It is also the largest homebuilder by volume in the United States. At last glance, DHI is trading down 3% at $72.83. 

Regarding the stock, DHI is down by about 23% year-over-year and has decreased by 21% since reaching a 52-week high of $110.45. Additionally, it has dropped in price by 32% year-to-date. However, the stock has recovered by 27% since bottoming at $59.25 and has grown by 4% in the past month. Still, D.R. Horton offers an extremely low forward price-earnings ratio of 5.83 and a price-sales ratio of 0.84. It also provides a dividend yield of 1.2% at a forward dividend of $0.90.

Puts have been much more popular than usual in the options pits, per DHI's 50-day put/call volume ratio of 3.66 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 98% of readings from the past year. 

Moreover, the business is estimated to end fiscal 2022 with 21.9% revenue growth and 48% earnings growth. Unfortunately, D.R. Horton is also expected to see significant declines on its top and bottom lines for the coming year. As a result, the stock continues to provide an attractive opportunity for long-term and value investors to build a position in D.R. Horton for a discounted price.
 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!