D.R. Horton shows strong Q2 sales and margins despite mortgage challenges, but stock is pricey now.

D.R. Horton reported resilient sales and profit margins in its fiscal Q2 2026, supported by affordable pricing, buydown financing, and strong demand from first-time homebuyers. The company's integrated approach to land development, construction, and mortgage financing helps sustain growth and profitability. However, the stock currently trades at a premium compared to historical averages, with technical indicators suggesting it is overbought. Investors are advised to wait for a price dip closer to $130-$140 before buying, while monitoring the company's elevated debt-to-capital ratio of 21.7%, which poses risks amid a high interest rate environment.