Alphanso’s AI Stock Research picked DHI as one of the top stocks of the year.
Alphanso rating: 9.7/10
Return potential: 22%
This pick stands out because, even in the current environment, the company’s financial condition is fair, trading cheap, and its profitability is strong making it a resilient ‘value’ investment.
Fundamental Metrics:
- The free-cash-flow yield of 8.75% vs. 7.5% sector median trading at 8.13 PE (fwd) indicates the company’s ability to generate cash flows making it a very sustainable business trading at a relatively low price.
- Revenue growth (fwd) of 9.3% vs. 6% sector median and EBITDA growth (fwd) of 7.66% vs. 3.85% sector median suggests that its products and services are highly competitive.
- The ROE of 24.5% vs. sector median of 11.4%, with only a 27% D/E ratio indicating that its management is highly efficient and shareholder-friendly.
- As the largest homebuilding company in the US, well-positioned to absorb economic tailwinds. Street looks at it as an undervalued stock and has attracted attention from major investors such as Warren Buffet.
- $DHI has beaten earnings expectations 73% of the time in the past 15 years.
Technical Metrics:
Based on the Alphanso model, the stock is trading below the expected channel (range) of $128.7 – $131.2
