DHI

D.R. Horton (DHI) closed at $133.23, down 1.31% and lagging market gains. The homebuilder has dropped 5.43% over the past month.

While trading at a discount with a Forward P/E of 11.57, the company faces headwinds with a Zacks Rank #4 (Sell) rating. Consensus estimates show a 0.66% EPS increase but a 6.66% revenue decline for the upcoming quarter, with annual projections showing -9.59% earnings decline and -4.18% revenue decrease. The Building Products - Home Builders industry ranks in the bottom 3% of all industries.

Rising Treasury yields have pushed mortgage rates above 7%, the highest in over two years, severely impacting homebuilders. The iShares U.S. Home Construction ETF is down 9.9% in the past month, with major holdings like D.R. Horton, PulteGroup, and Lennar all declining significantly. Multiple factors including energy prices, growing U.S. debt, and tech company bond issuance suggest yields will remain elevated, making homebuilder stocks unattractive near-term investments.