What Not to Miss in D.R. Horton's Earnings Report

Dr. Horton, the largest US home builder, is thriving due to a strong economy and low mortgage rates. The company's stock has outperformed the S&P 500, driven by high home builder sentiment. Despite rising mortgage rates, demand remains strong, benefiting from a shortage of existing homes. Dr. Horton is well-positioned across 27 states to capitalize on housing market upturns. The company closed over 41,000 homes in 2016, maintaining stable operating margins despite higher costs. The Express Homes brand is growing, but rising expenses could impact margins in 2017.

What has been a key factor in Dr. Horton's stock performance this year?

• Rising mortgage rates

• High inventory of existing homes

• Strong home builder sentiment

• Decreasing demand for homes

How have buyers reacted to the increase in mortgage rates?

• They are buying more existing homes

• They continue to apply for mortgages

• They have stopped buying homes

• They are waiting for rates to decrease

What advantage does Dr. Horton have due to its presence in multiple states?

• Higher selling prices

• Exclusive access to premium land

• Lower construction costs

• Ability to capitalize on a broad housing upturn

What is a potential challenge for Dr. Horton in maintaining its margins?

• Decreasing demand for entry-level homes

• Declining interest in the Express Homes brand

• Rising labor and material costs

• Increasing competition from smaller builders

What is the significance of Dr. Horton's Express Homes brand?

• It is only available in select states

• It focuses on entry-level homes

• It is a minor part of the business

• It targets luxury home buyers