D.R. Horton (DHI)

Hello, I have recently done some light research into the company D.R. Horton a home construction business.

P/E Ratio: 16.65
D/E: < .5
Current Ratio: 7-9

I still believe the housing market is in the expansion phase as opposed to the hyperinflation stage. This is because home vacancy is still decreasing and so are unemployment levels. Also I've been reading articles about how there is too much demand to meet with the current supply. D.R. Horton's current strategy is to focus on entry level home buyers such as milennials and people to live in low maintenance cost homes. They have been increasing revenues at a steady 15-20% year after year which I think justifies purchasing at the current P/E Ratio.

They are also the largest home construction company in America.

Please bring up concerns you have with this stock pick!

my concerns are:

I'm not sure that their moat is that strong, they say they have economies of scale, but every town is different and it seems like a local guy could just come in and beat them.

Economy goes boom and along with it the desire for people to buy homes.

Tell me how you feel about the "housing market" (as vague as that is).
I'd like to hear from @normgrib considering you are pretty invested in leveraged real estate yah?
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