D.R. Horton: No Demand Destruction Despite Macro Headwinds

D.R. Horton's FQ2'26 results demonstrate resilient sales and margins, with affordable pricing/buydown financing and strong first-time buyer demand offsetting high mortgage headwinds. These reasons are also why their integrated land development, construction, and mortgage financing capabilities enable numerous growth levers, sustaining sales and profitability. Given the overly done rally, DHI now trades at a premium to historical averages while pulling forward part of their upside potential to my LTPT of $232.