US Markets
Home›US Markets›Sectors›D.R. Horton shares lag broader consumer stocks as outl…
D.R. Horton shares lag broader consumer stocks as outlook fades
The homebuilder has fallen 22.5% from its 52-week high and cut its 2026 revenue forecast to $32.5 billion to $33.0 billion amid affordability pressure and high mortgage rates.
D.R. Horton, Inc. is facing weaker performance versus the consumer discretionary space, with shares down 22.5% from their 52-week high of $183.08 and down 19.2% over the past 52 weeks. Over the past three months, the stock has declined 2.5%, compared with a 2.0% dip in the State Street Consumer Discretionary Select Sector SPDR ETF, XLY.
The report ties the underperformance to a July 21 move in which D.R. Horton cut its 2026 consolidated revenue forecast to $32.5 billion to $33.0 billion, below analysts' expectations. The company pointed to affordability constraints, cautious consumer sentiment, and high mortgage rates, which have weakened new-home demand.
To support sales, D.R. Horton has leaned on elevated incentives such as mortgage rate buydowns and smaller homes. The outlook also reflects margin pressure from rising construction costs, persistent inflation, and tariffs on key raw materials, with Q3 2026 EPS falling to $3.20 from $3.36 a year earlier, according to the Yahoo Finance write-up.