D.R. Horton: The Market Recognizes Strength

  • D.R. Horton shares have rallied 17% post-earnings, signaling the housing cycle's trough may be behind us. Cyclical investing favors buying when sentiment is most negative, which I argued was the case for D.R. Horton a month ago. Homebuilders faced a perfect storm: tariffs, labor shortages, high inventory, and rising mortgage rates, driving a 40% drop from peak.