D.R. Horton vs Target

This page compares D.R. Horton and Target Corp., examining business models, financial performance, and market context in a clear, neutral way. It highlights factors shaping growth, competitive dynamics, and strategy for readers. Educational content, not financial advice.

This page compares D.R. Horton and Target Corp., examining business models, financial performance, and market context in a clear, neutral way. It highlights factors shaping growth, competitive dynamic...

Comparison Snapshot

Key Financial Metrics

DHI

Metric

TGT

$43.39B

Market Cap

$49.60B

4.41%

Potential Profit

-12.70%

Hold

Analyst Rating

Hold

Why It's Moving

D.R. Horton Beats Q1 Earnings Despite Revenue Dip, Signals Steady Path Ahead Amid Housing Headwinds

EPS of $2.03 crushed consensus of $1.98, highlighting operational strength and a 20.4% gross margin bolstered by warranty benefits.
Repurchased 4.4 million shares for $669.7 million while declaring a $0.45 quarterly dividend payable February 12, underscoring commitment to shareholders amid $819 million liquidity.
Q2 gross margin guided to 19.0-19.5% with fiscal 2026 outlook intact at $33.5-35 billion in revenue, reflecting cautious optimism despite market pressures.

Sentiment:

⚖️Neutral

Target Ushers in New Era with CEO Shift, Aggressive Store Expansion, and Wellness Push

New CEO Michael Fiddelke, former COO, takes helm to tackle ongoing challenges after years of lagging performance, with revenue and net income peaking in 2022.
Announced 30 new stores and $1 billion extra investment in 2026, boosting total capex to $5 billion to fuel physical footprint growth.
Wellness category surges 30% with thousands of under-$10 items, over 1,000 new apparel pieces, plus record spring beauty assortment of nearly 3,000 products to capture everyday demand.

Sentiment:

🐃Bullish

D.R. Horton Beats Q1 Earnings Despite Revenue Dip, Signals Steady Path Ahead Amid Housing Headwinds

EPS of $2.03 crushed consensus of $1.98, highlighting operational strength and a 20.4% gross margin bolstered by warranty benefits.
Repurchased 4.4 million shares for $669.7 million while declaring a $0.45 quarterly dividend payable February 12, underscoring commitment to shareholders amid $819 million liquidity.
Q2 gross margin guided to 19.0-19.5% with fiscal 2026 outlook intact at $33.5-35 billion in revenue, reflecting cautious optimism despite market pressures.

Sentiment:

⚖️Neutral

Target Ushers in New Era with CEO Shift, Aggressive Store Expansion, and Wellness Push

New CEO Michael Fiddelke, former COO, takes helm to tackle ongoing challenges after years of lagging performance, with revenue and net income peaking in 2022.
Announced 30 new stores and $1 billion extra investment in 2026, boosting total capex to $5 billion to fuel physical footprint growth.
Wellness category surges 30% with thousands of under-$10 items, over 1,000 new apparel pieces, plus record spring beauty assortment of nearly 3,000 products to capture everyday demand.

Sentiment:

🐃Bullish

Investment Analysis

D.R. Horton

DHI

Pros

Largest U.S. homebuilder for 24 consecutive years with strong geographic diversification, supporting steady market share.
Reported full-year net income of $3.6 billion and a strong gross profit margin of 23.58%, reflecting operational efficiency.
Maintains robust liquidity with a current ratio of 6.53 and plans significant stock repurchases to enhance shareholder value.

Considerations

Recent quarterly earnings per share missed estimates, causing a notable stock price decline and highlighting execution risks.
Soft homebuyer demand and persistent affordability challenges are expected to weigh on near-term growth prospects.
Shares have declined about 14% in the past month, indicating investor caution amid weaker sector sentiment and earnings outlook.

Target

TGT

Pros

Target has shown resilience with ongoing revenue growth driven by strong omni-channel retail and private label expansion.
Consistent dividend payments supported by solid cash flow generation reflecting operational profitability.
Significant investments in supply chain improvements and digital capabilities position it well for future competitive advantage.

Considerations

Target’s margins remain pressured by inflationary costs and heightened promotional activity impacting profitability.
Exposure to consumer discretionary spending makes performance sensitive to economic downturns and changing shopping behaviours.
Increasing competition from online retailers and discount chains poses ongoing market share and pricing pressure risks.

Related Market Insights

Fed Pivot Stocks: What's Next for Rate-Sensitive Plays

Explore rate-sensitive stocks like homebuilders, banks & utilities poised to benefit from a potential Fed pivot. Invest in this Neme with fractional shares from £1.