Daily Stock Pick: January 13th, 2023

One of the hardest hit sectors last year, real estate, has recently been a bright spot in markets thanks to fast-falling mortgage rates. According to bankrate.com, the national average for a 30-year fixed mortgage hit a high of 7.2% on November 11th and has since pulled back to around 6.5%. Homebuilders have benefited from the deep dive over the past few weeks and should continue to do so as long as mortgage rates continue to lower. 

According to some Wall Street pros, we may have a “once-in-a-cycle opportunity” to cash in on the early-cycle outperformance phase of homebuilder stocks, begging the question – which home builders are best positioned in the lower-mortgage-rate environment? Our stock recommendation for today is one of the best-positioned names from the group for the year ahead.     

Empire Research:

A company with 400 million ‘patents’

One company has quietly compiled more than 400 million official trade secrets.

Trade secrets are like patents in that they protect valuable and proprietary information…

But unlike patents, trade secrets take less time to register… and more importantly, they never expire.

Which is a huge advantage for this little-known company.

You see, this company is using these trade secrets to build the world’s largest “codebase,” which will bethe key to it becoming “America’s Next Big Monopoly.”

Not surprisingly, Wall Street is starting to take notice. And the smart money is already pouring in.

Tech investor Cathie Wood has invested over $80 million already, and Microsoft founder Bill Gates has invested as well.

Get the details here before this story hits the mainstream media.

Founded in 1978 in Fort Worth, Texas, D.R. Horton (DHI) has operations in 106 markets in 33 states across the United States and closed 83,518 homes in its homebuilding and single-family rental operations during its fiscal year ended September 30th, 2022. 

The company is engaged in constructing and selling high-quality homes through its diverse brand portfolio, which includes Emerald Homes, Express Homes, and Freedom Homes, with sales generally ranging from $200,000 to over $1,000,000. It also provides mortgage financing, title services, and insurance agency services for its homebuyers through its mortgage, title, and insurance subsidiaries. 

In the third quarter, D.R. Horton missed analyst estimates for earnings and revenue due to the cooling housing market. From June to September 2022, the company’s total homebuilding lot position decreased by 25,000 lots. Still, the company has been actively managing the lot and land pipeline and investments in lots, land, and development to meet needs during this transition in the housing market. 

Impressive performance, industry-leading market share, a solid acquisition strategy, a well-stocked supply of land, lots, and homes, along with affordable product offerings across multiple brands, are expected to drive growth. D.R. Horton’s earnings are expected to grow 1.7% in fiscal 2023. The stock has gained 24.9% over the past three months, outperforming the industry’s 19% rise. DHI stock has a solid Buy rating from the pros offering recommendations. A median price target of $101 represents an increase of 6% from Friday’s opening price.