Ross vs D.R. Horton
Ross Stores Inc. and D.R. Horton, Inc. are compared here to outline their business models, financial performance, and market context in a neutral, accessible way. This page explains how each company operates, grows, and competes within its sector. Educational content, not financial advice.
Ross Stores Inc. and D.R. Horton, Inc. are compared here to outline their business models, financial performance, and market context in a neutral, accessible way. This page explains how each company o...
Why It's Moving
Ross Stores (ROST) surges to 52-week high on earnings momentum and retail leadership.
- EPS of $1.58 in the November 20 report crushed estimates of $1.40, reinforcing a streak of four straight positive surprises and boosting confidence in growth.
- Stock leads NASDAQ Composite retail performers as of December 11, up 11.7% in the past month and 20.2% year-to-date, far exceeding sector gains.
- Ongoing store expansion with 90 new locations signals aggressive scaling, supporting projected revenue growth to $22.4B this fiscal year.
D.R. Horton rides BTIG buy rating amid brighter housing outlook despite lawsuit headwinds.
- BTIG initiated Buy coverage, highlighting expected dip in 30-year mortgage rates to 6.3% and persistent low inventory driving home prices higher, easing affordability strains[2][5].
- Borrowers escalated RICO claims against D.R. Horton and DHI Mortgage, accusing them of understating property taxes to lure buyers with artificially low initial payments that later spiked by up to $1,000 monthly[3].
- Mixed institutional flows emerged with Luxor Capital adding a $1.01M stake while Investment House trimmed 20,533 shares, as shares showed volatility amid broader market gains[1][4][5].
Ross Stores (ROST) surges to 52-week high on earnings momentum and retail leadership.
- EPS of $1.58 in the November 20 report crushed estimates of $1.40, reinforcing a streak of four straight positive surprises and boosting confidence in growth.
- Stock leads NASDAQ Composite retail performers as of December 11, up 11.7% in the past month and 20.2% year-to-date, far exceeding sector gains.
- Ongoing store expansion with 90 new locations signals aggressive scaling, supporting projected revenue growth to $22.4B this fiscal year.
D.R. Horton rides BTIG buy rating amid brighter housing outlook despite lawsuit headwinds.
- BTIG initiated Buy coverage, highlighting expected dip in 30-year mortgage rates to 6.3% and persistent low inventory driving home prices higher, easing affordability strains[2][5].
- Borrowers escalated RICO claims against D.R. Horton and DHI Mortgage, accusing them of understating property taxes to lure buyers with artificially low initial payments that later spiked by up to $1,000 monthly[3].
- Mixed institutional flows emerged with Luxor Capital adding a $1.01M stake while Investment House trimmed 20,533 shares, as shares showed volatility amid broader market gains[1][4][5].
Which Baskets Do They Appear In?
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Explore BasketWhich Baskets Do They Appear In?
US Consumer Spending Stocks to Watch in 2025
U.S. retail sales have exceeded expectations for the third straight month, signaling robust consumer health. This theme focuses on companies poised to benefit from sustained consumer spending, particularly in strong-performing sectors like online retail and food services.
Published: September 17, 2025
Explore BasketValue Retail Stocks (Budget-Conscious Consumer Play)
With consumer sentiment falling, particularly among budget-conscious households, spending habits are shifting towards value-focused retailers. This theme identifies companies poised to attract customers who are looking to stretch their dollars on essential goods.
Published: September 14, 2025
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Published: September 13, 2025
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Published: July 25, 2025
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Explore BasketInvestment Analysis
Ross
ROST
Pros
- Ross Stores has demonstrated consistent revenue growth and operational efficiency with a solid demand for its discounted apparel and home fashion products.
- The company is executing an aggressive store expansion strategy, growing its store count by approximately 4.1% annually, which supports increased revenue potential.
- Ross Stores maintains a low debt-to-equity ratio, indicating strong financial stability and lower risk compared to its retail peers.
Considerations
- Insider selling activity has been noted recently, which may signal concerns about the company's near-term performance from management insiders.
- The stock trades at a relatively high price-to-earnings ratio, suggesting it may be overvalued and limiting significant upside potential.
- Ross Stores’ stock price has shown volatility over the past year, with fluctuations that could be unattractive to investors seeking stability.
D.R. Horton
DHI
Pros
- D.R. Horton has a strong competitive position as one of the largest homebuilders in the US, operating in 31 states with diversified regional exposure.
- The company’s return on equity (ROE) of 14.62% reflects efficient use of shareholder capital and strong profitability in the residential construction sector.
- D.R. Horton offers integrated services including mortgage financing and title insurance, providing diverse revenue streams and potential cross-selling advantages.
Considerations
- The current ROE is below its 10-year average, indicating a potential recent dip in profitability compared to historical performance.
- As a homebuilder, D.R. Horton is exposed to macroeconomic risks including interest rate fluctuations and housing market cyclicality, which could impact demand.
- The residential construction industry faces execution risks such as supply chain disruptions and rising material costs that could pressure margins.
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