Core Insights - Heartland Mid Cap Value Fund's portfolio increased by 1.63% in Q3 2025, underperforming the Russell Midcap® Value Index which gained 6.18% [1] - Stock selection was identified as the main reason for the underperformance, with a market environment favoring large- and mid-cap growth stocks driven by optimism around AI and rising electricity demand [1] - The focus on valuations during this period was noted as potentially detrimental to performance [1] Company Highlights - D.R. Horton, Inc. (NYSE:DHI) was highlighted as a significant holding, experiencing a one-month return of -11.92% and a 52-week loss of 18.99% [2] - As of October 10, 2025, D.R. Horton, Inc. had a market capitalization of $45.19 billion, with shares closing at $151.58 [2] - D.R. Horton, Inc. was noted as the best-performing holding in the quarter, benefiting from its position as the largest homebuilder in the U.S. with approximately 10% market share [3] Hedge Fund Interest - D.R. Horton, Inc. was held by 64 hedge fund portfolios at the end of Q2 2025, a decrease from 67 in the previous quarter [4] - While D.R. Horton, Inc. is recognized for its investment potential, the company is not among the 30 most popular stocks among hedge funds, with a suggestion that certain AI stocks may offer better upside potential [4]

Core Viewpoint - US homebuilder stocks are under scrutiny following a downgrade by Evercore ISI analyst Stephen Kim, who cited near-term challenges despite the sector's strong profitability and capital returns [1] Group 1: Analyst Downgrade - Stephen Kim downgraded six homebuilder stocks, indicating concerns about short-term headwinds affecting the sector [1] Group 2: Sector Performance - The homebuilding sector has demonstrated robust profitability and capital returns, which contrasts with the recent downgrade [1]

Core Viewpoint - Bank of America Securities has lowered the target price for Horton Homes from $175 to $165 and for Lennar Homes from $133 to $125, maintaining a "Neutral" rating for both companies [1] Company Summaries - Horton Homes: Target price reduced from $175 to $165, maintaining a "Neutral" rating [1] - Lennar Homes: Target price reduced from $133 to $125, maintaining a "Neutral" rating [1]

Core Viewpoint - The housing sector is facing significant challenges, with major homebuilder ETFs experiencing declines and mortgage rates remaining above 6%, impacting builder performance and stock prices [1][4][10]. Group 1: Market Performance - The XHB homebuilder ETF has dropped 2%, reaching its lowest level in over two months, while the ITB construction ETF is on track for its worst week of the year [1]. - Major homebuilders like DHI, PY Homes, and Toll Brothers have seen stock declines of 10% or more since Monday, indicating a broader market downturn [2]. - The ITB is down 20% from its all-time highs, suggesting underlying issues in the housing market [12]. Group 2: Mortgage Rates and Builder Strategies - Although mortgage rates have decreased from their highs, they remain above 6%, which is a significant barrier for builders [1][11]. - Builders are reportedly buying down an average of 100 basis points in mortgage rates, effectively lowering rates to below 5.5%, but this strategy is margin destructive [4][10]. - The structural profitability problem in the housing industry is exacerbated by increased input costs and labor issues, making lower rates insufficient to improve profitability [10][11]. Group 3: Inventory and Pricing Pressure - There is an observed increase in inventory across various regions, which is expected to put pressure on pricing and subsequently affect stock performance [3][4]. - New home prices are reportedly cheaper than existing homes for the first time, indicating a shift in market dynamics [9]. Group 4: Broader Economic Implications - The current challenges in the housing market may be indicative of broader economic issues, including potential tariff implications on earnings and supply-side dynamics affecting corporate margins [8][10]. - The home improvement sector may see activity pick up if mortgage rates decline, presenting a potential area of interest for investors [10][12].

Core Viewpoint - D.R. Horton, Inc. (DHI) is a leading homebuilder expected to report a decline in earnings for the fiscal fourth quarter of 2025, with analysts projecting a profit of $3.29 per share, down 16.1% from the previous year [2][3]. Company Overview - DHI operates as a homebuilding company with a market cap of $48 billion, focusing on single-family homes for entry-level and move-up markets, and also provides mortgage financing and title agency services [1]. Earnings Expectations - Analysts anticipate DHI will report an EPS of $11.79 for the full year, reflecting a decrease of 17.8% from $14.34 in fiscal 2024, but expect a slight recovery with an EPS of $12.05 in fiscal 2026, representing a 2.2% year-over-year increase [3]. Stock Performance - DHI shares have underperformed the S&P 500 Index, which gained 17.9% over the past 52 weeks, with DHI shares down 13% during the same period [4]. Recent Performance - On July 22, DHI shares surged 17% after reporting Q3 results, with an EPS of $3.36 exceeding expectations of $2.90 and revenue of $9.2 billion surpassing forecasts of $8.8 billion [5]. Analyst Ratings - The consensus opinion on DHI stock is moderately bullish, with a "Moderate Buy" rating. Out of 20 analysts, eight recommend a "Strong Buy," ten suggest a "Hold," and two advise a "Strong Sell." The average price target is $166.53, indicating a potential upside of 3.3% from current levels [6].

Mortgage rates often echo changes in the 10-year Treasury yield, which is rising. Financing costs could increase for buyers. ...

We've got Stephanie Link, chief investment strategist and portfolio manager at High Totower Investors as well as a CNBC contributor. Uh she is working. She is not a government worker and she's got data or at least some information to impart to us about how you're thinking about playing this market right now.Yeah, we've I've got some data. Um the uh economy, Andrew, is running at 3.8% GDP. in the face of all these unknowns with regards to the government shutdown and tariffs, inflation, geopolitical issues, t ...

With so many stocks showing big gains on a daily basis, the market is full of temptations. Sometimes the urge to participate leads to buying stocks that are extended. That in turn leads to risk management issues. That's why we often look at pullbacks in strong stocks as opportunities for entries. A recent example was D.R. Horton stock. Move Above 200-day Line Gets Housing On RadarWhile housing stocks sat out most of the rally this year, they've started climbing the right side of bases since this summer. Wi ...

Core Insights - D.R. Horton (DHI) and NVR are two prominent stocks in the Building Products - Home Builders sector, with DHI currently offering better value for investors compared to NVR [1] Valuation Metrics - DHI has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook than NVR, which has a Zacks Rank of 4 (Sell) [3] - DHI's forward P/E ratio is 14.37, significantly lower than NVR's forward P/E of 19.22, suggesting DHI may be undervalued [5] - The PEG ratio for DHI is 3.59, while NVR's PEG ratio is much higher at 11.17, indicating DHI's earnings growth is more favorably priced [5] - DHI's P/B ratio stands at 2.05, compared to NVR's P/B of 6.11, further supporting DHI's valuation advantage [6] - DHI has a Value grade of B, while NVR has a Value grade of C, reinforcing the perception that DHI is the more attractive investment option [6]

Group 1 - Crude Value Insights provides an investment service and community focused on the oil and natural gas sectors, emphasizing cash flow and companies that generate it [1] - The service offers subscribers access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1] Group 2 - A two-week free trial is available for new subscribers, promoting engagement with the oil and gas market [2]