D.R. Horton Stock's Composite Rating Hits Near-Perfect 96 Amid Continuing Quarterly Double-Digit Profit, Sales Gains

With housing in short supply, and interest rates hovering near historic lows and expected to stay that way for a while, builders like D.R. Horton (DHI) are enjoying a boom. On Wednesday, the IBD SmartSelect Composite Rating for D.R. Horton stock rose from 93 to a near-best 96.

The new score means D.R. Horton stock is now outperforming 96% of all stocks in terms of the most important fundamental and technical stock-picking criteria. The market’s biggest winners often have a 95 or higher score in the early stages of a new price run, so that’s a good item to have on your checklist when looking for the best stocks to buy and watch.

D.R. Horton EPS Rating Also Outstanding

The Arlington, Texas-based homebuilder has a 98 EPS Rating, meaning its recent quarterly and longer-term annual earnings growth tops 98% of all stocks.

D.R. Horton stock’s Accumulation/Distribution Rating is C, on an A+ to E scale. That shows a roughly equal amount of buying and selling by institutional investors over the last 13 weeks.

D.R. Horton is currently forming a consolidation, with a 106.99 entry. See if the stock can break out in heavy trade at least 40% higher than normal.

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In Q3, the company reported 88% earnings growth to $3.06 per share. Revenue grew 35% year over year to $7.28 billion. The builder has reported four quarters of double-digit growth for both profits and sales.

D.R. Horton stock holds the No. 7 rank among its peers in the Building-Residential/Commercial industry group. Century Communities (CCS), M/I Homes (MHO) and NVR (NVR) are among the top 5 highly-rated stocks within the group.

D.R. Horton stock is currently forming a consolidation, with a 106.99 entry. See if the stock can break out in heavy trade at least 40% higher than normal.

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