6-Day Sell-Off Sends D.R. Horton Stock Down -7.7%

December 24th, 2025 by Trefis Team
DHI: D.R. Horton logo
DHI
D.R. Horton

D.R. Horton (DHI) stock hit day 6-day losing streak, with cumulative losses over this period amounting to a -7.7%. The company market cap has crashed by about $3.6 Bil over the last 6 days, and currently stands at $43 Bil.

The stock has YTD (year-to-date) return of 4.6% compared to 17.5% for S&P 500. This calls for re-evaluation of stock’s valuation, and find out whether this is an opportunity, or a trap.

What Triggered The Slide?

Catalyst Details Impact Date
     
Broad Homebuilder Sector Weakness
  • Competitor Lennar announced a 10% price cut and guided for lower margins, citing an ‘affordability crisis’ [6]
  • NAHB/Wells Fargo Housing Market Index in December remained in negative territory, with 40% of builders cutting prices [4, 7]
  • Sustained institutional selling
  • Negative investor sentiment
 2025-12-17
     
Analyst Downgrades and Negative Commentary
  • Barclays initiated a price target of $132.00, implying a potential downside [5]
  • Recent earnings miss of $0.25 per share was highlighted in market reports [1, 17]
  • Increased investor concern over future profitability
  • Price momentum decline
 2025-12-19
     

Opportunity or Trap?

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Below is our take on valuation.

There are several things to fear in DHI stock given its overall Weak operating performance and financial condition. This is aligned with the stock’s Low valuation because of which we think it is Fairly Priced (For details, see Buy or Sell DHI).

But here is the real interesting point.

You are reading about this -7.7% move after it happened. The market has already priced in the news. To avoid the next loser before the headlines, you need predictive signals, not notifications. Our High Quality Portfolio has a risk model designed to reduce exposure to losers.

Returns vs S&P 500

The following table summarizes the return for DHI stock vs. the S&P 500 index over different periods, including the current streak:

Return Period DHI S&P 500
1D -0.6% 0.5%
6D (Current Streak) -7.7% 1.4%
1M (21D) -1.5% 4.6%
3M (63D) -13.5% 4.1%
YTD 2025 4.6% 17.5%
2024 -7.2% 23.3%
2023 72.1% 24.2%
2022 -16.8% -19.4%

Take a look at what history tells you about whether past dips like this have been buying opportunities or traps: DHI Dip Buyer Analysis.

Gains and Losses Streaks: S&P 500 Constituents

There are currently 95 S&P constituents with 3 days or more of consecutive gains and 39 constituents with 3 days or more of consecutive losses.
 

Consecutive Days # of Gainers # of Losers
3D 35 17
4D 49 10
5D 9 3
6D 1 7
7D or more 1 2
Total >=3 D 95 39

 
 
Key Financials for D.R. Horton (DHI)

Last 2 Fiscal Years:

Metric FY2024 FY2025
Revenues $36.8 Bil $34.3 Bil
Operating Income $5.9 Bil $4.4 Bil
Net Income $4.8 Bil $3.6 Bil

Last 2 Fiscal Quarters:

Metric 2025 FQ3 2025 FQ4
Revenues $9.2 Bil $9.7 Bil
Operating Income $1.3 Bil $1.1 Bil
Net Income $1.0 Bil $905.3 Mil

The losing streak DHI stock is currently on doesn’t inspire much confidence among investors. In contrast, Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.