Homebuilder Horton – Hold, Fold Or Double-Down?
Wednesday, everything seemed so right with D.R. Horton (DHI). Analysis had revealed a high quality, well-managed company. Then the excellent industry news ramped up sales and earnings expectations. Thursday morning, sure enough, Horton announced that it not only beat the average EPS estimate by 24%, but also exceeded the top of the analyst estimate range.
The result? The stock market rewarded D.R. Horton’s stock with a -9% drop.
So, what went wrong and what should we do next?
This article is published on SeekingAlpha.com