Arlington, Texas-based D.R. Horton, Inc. (DHI) engages in the acquisition and development of land, and construction and sale of residential homes. With a market cap of $37.5 billion, D.R. Horton operates in the East, North, Southeast, South Central, Southwest, and Northwest regions of the United States.

The construction giant has significantly underperformed the broader market over the past year. DHI stock has plunged 18.4% over the past 52 weeks and 12.7% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 8.6% gains over the past year and 3.8% decline in 2025.

Narrowing the focus, D.R. Horton has also underperformed the industry-focused SPDR S&P Homebuilders ETF’s (XHB) 10.4% decline over the past 52 weeks and 7.8% drop in 2025.

D.R. Horton’s stock prices rose 3.2% after the release of its mixed Q2 results on Apr. 17. Due to the continued real estate affordability crisis, macro uncertainties, and dampening consumer confidence, the company’s orders and housebuilding revenues remained under pressure. Its overall topline for the quarter dropped 15.1% year-over-year to $7.7 billion. Meanwhile, its net income to shareholders plummeted 30.9% year-over-year to $810.4 million.

However, the company showcased its commitment to shareholders by repurchasing $1.4 billion worth of equity shares during the quarter and reducing its outstanding share count by 7% compared to the year-ago quarter. Simultaneously, D.R. Horton has significantly raised its overall dividend payments from $99.2 million paid in the year-ago quarter to $125.5 million.

For the current FY25, ending in September, analysts expect DHI to deliver an EPS of $11.41, notably down from $14.34 reported in FY24. The company has a mixed earnings surprise history. While it surpassed the Street’s bottom-line estimates twice over the past four quarters, it missed the projections on two other occasions.

DHI holds a consensus “Moderate Buy” rating overall. Of the 19 analysts covering the stock, opinions include nine “Strong Buys,” eight “Holds,” and two “Strong Sells.”

This configuration is slightly more bullish than three months ago, when eight analysts gave “Strong Buy” recommendations.

On Apr. 22, Keefe, Bruyette & Woods analyst Jade Rahmani maintained a “Market Perform” rating on DHI, but significantly lowered the price target $165 to $135.

As of writing, D.R. Horton’s mean price target of $152.81 represents a 25.2% premium to current price levels. While its street-high target of $220 suggests a staggering 80.3% upside potential.