Real Estate Sector Ideas

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>>> D.R. Horton -- When interest rates drop, mortgage rates usually do, too. And when mortgage rates decline, more Americans can afford to borrow money to build new homes. Rate cuts, therefore, can provide nice catalysts for housing stocks.

https://finance.yahoo.com/news/3-stocks-buy-hand-over-095000813.html

D.R. Horton (NYSE: DHI) isn't just any housing stock; it's been the biggest homebuilder in the U.S. by volume for over 20 years. The company operates in 118 markets across 33 states. D.R. Horton builds residential houses and single-family and multifamily rental units, and provides mortgage financing and title agency services.

The stock is surprisingly cheap considering the gains it's racked up in recent years. D.R. Horton's forward earnings multiple is only 12.2. Its price-to-earnings-to-growth (PEG) ratio, based on five years of projected earnings growth, is a low 0.64.

Even if the Fed doesn't cut interest rates soon, D.R. Horton should still be a tremendous winner over the long term. The U.S. continues to suffer from an acute housing shortage, and the obvious solution to this problem is to build more homes -- exactly what D.R. Horton wants to do.

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