Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
The D.R. Horton Inc. (NYSE: DHI) stock showcased a revenue of $9.73 Billion for the quarter ending June 2023 earnings report, with a net income of $1.34 Billion and a profit margin of 13.73%, which was more than the previous quarter.
Furthermore, the DHI revenue beat the analysts’ estimate for the period by $1.425 Billion (0.47%).
The annual graph shows that the DHI stock’s revenue, net income, and profit margin have been increasing steadily, indicating a strong financial and fundamental performance.
The DHI stock also delivered an EPS of $3.90 for the quarter ending June 2023, surpassing the analysts’ estimate of $2.822 by 38.21%.
In addition, the DHI next quarter’s revenue and EPS are projected to be $10.014 billion and $3.937 respectively, and the report will be released on December 13th, 2023.However, the DHI stock price dropped after the earnings report, this could be due to some investors taking profits after the strong results.
The DHI stock is still fundamentally and financially sound, and investors should not be worried about the temporary decline. The DHI stock price may rebound and reach new highs as the next report approaches.
Besides, the analysts are also bullish on the DHI stock, with 23 analysts rating it as a “buy” in the last three months.Additionally, the 1-year price target for the stock ranges from $115 to $164, according to 18 analysts.
Will This Fall Turn Into A Rally On Upcoming Earnings?
The CMP is $100.66 and DHI stock is below the 20 and 50-day exponential moving averages, indicating a downward trend. However, it is close to the 20 EMA, which suggests a potential reversal as earnings are approaching.
If DHI can attract more buyers, it may break above the EMA’s and turn them into support levels.
The RSI is 34.25, which is below the 50 level and shows bearish momentum. The 14 SMA is also below the 50 level at 36.70, indicating a downtrend. The MACD and the signal line are both negative at 2.89 and 2.85, respectively, confirming the bearish trend.
However, these indicators might not reflect the true value of DHI, as it has strong fundamentals and financials and is awaiting its earnings report, which may change the direction.
Moreover, the analysts and the market sentiment are bullish on DHI, suggesting a possible recovery.
Summary
The D.R. Horton Inc. (NYSE: DHI) technical analysis tools of the stock price highlight ancestral signs of downward signals which might not show the true value of the stock. Since earnings are approaching and the analysts and market sentiments seem positive on the chart, the DHI stock might get an upthrust and boost its price.
Technical Levels
Support Levels: $95 and $90
Resistance Levels: $105 and $110
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/10/21/dhi-stock-forecast-can-nyse-dhi-boost-on-earning-report/