Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of homebuilder D.R. Horton were adding another level today, climbing as much as 11% after reporting a strong quarter.
So what: Riding the bullish wave in the housing sector, the nation's largest homebuilder delivered its strongest Q1 in six quarters. Profits more than doubled to $66.3 million, or $0.20 a share, up from $0.09 a year ago, beating estimates of $0.14. Closing and orders were up 26% and 39%, respectively, while the average sales price increased 15% and Horton's backlog grew 62%. Revenues jumped 39% as well.
Now what: Horton's report was yet more evidence of the housing recovery, and I expect the bullishness to continue, with housing inventory reaching its lowest levels in the past five or six years. Still, shares already have bright expectations baked in, with the P/E based on expected 2013 earnings at 27. Keep an eye on future developments with Horton by adding the stock to your Watchlist here.
The article Why D.R. Horton Shares Jumped originally appeared on Fool.com.Jeremy Bowman and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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