IBD stock analysis
- Back above 99.75 double base buy points
- 104.44 is another possible entry from the handle
- Lower Treasury yields boost housing demand
Industry group classification
* Not real time data. All data shown was captured at 1:18 PM EST on 02/12/2021.
Dr. Horton, it’s Thursday IBD stock today. DHI stock is currently in a buying range, but investors need to be careful amid the uncertainty in the housing and stock market due to the Covid-19 omicron variable.
The Dallas-based home builder is active in 31 states and operates under the Express Homes, Emerald Homes, Freedom Homes and DR Horton brands.
In November, Dr. Horton announced fourth-quarter financial results, with revenue that beat Wall Street expectations. DHI stock has a solid EPS rating of 98 . and 94 Compound classification.
The housing market surged during the pandemic as demand rose from a push for more space as many worked from home. On the supply side, shortages of timber and other supply chains along with the employment crunch have driven up housing prices.
Pending home sales rose more than 7% in October month-on-month, according to a November 29 National Association of Realtors report. Low interest rates are helping housing stocks rebound.
But the Covid-19 pandemic is far from over. Little is known about the new variant of the coronavirus, whose first case arrived in the United States on Wednesday, but it could hurt consumer confidence and reduce home sales.
In the meantime, if the uptrend in the market, which is already under pressure, turns into a correction, housing stocks are likely to come under some pressure.
On the flip side, if Omicron’s fears subside, mortgage rates may rebound, dampening housing demand and housing stocks.
Therefore, investors need to be careful. If you are buying DHI stock or other housing stock, make any such small purchases.
Shares rose 4.3% to 101.98 points, respectively stock market today. DHI stock is currently in a buy range after exiting a double bottom base With 99.75 points of purchase, according to MarketSmith Analysis. Investors can see 104.44 as an entry handle as well.
Shares of other homebuilders also present potential buying opportunities for investors.
Toll Brothers (feesShares are up 5.6% to 68.35, breaking the handle buying point of 67.44 in a consolidation going back to early May. But the luxury builder is reporting earnings next week. Investors should be careful when buying stocks before making profits as a slight failure in analyst expectations could lead to stocks falling.
century societies (CCS) Shares jumped 6% to 76.31. The stock breaks out of the handle at 75.47 buying points in a larger consolidation going back to late May. Century Communities is the highest-rated stock in the IBD’s residential/commercial building group.
Investors have the option of looking at several housing-related exchange-traded funds. An ETF is a good way for investors to profit from multiple sectors of the industry, while minimizing the risks associated with investing in a single stock.
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