6. D.R. Horton is a U.S.-based home building company with operations in 26 states and 72 metropolitan markets. The company conducts its business through six homebuilding segments and a financial services segment. Homebuilding operations contribute more than 95% toward aggregate revenue. For the third quarter ended June 2011, net income was $28.7 million, including pretax charges of $9.9 million. Net income for the second quarter of fiscal 2011 was $27.8 million. Home building revenue was $975.4 million in the June quarter of 2011, compared to $733.1 million in the second quarter of fiscal 2011. "Sequentially, our homebuilding revenues grew $242 million, home sales gross margins improved by 30 basis points and homebuilding SG&A decreased by approximately $10 million. Additionally, our net sales orders in the June quarter were about flat with the March quarter, reflecting a traditional seasonal demand pattern,â¿ said Donald R. Horton, the companyâ¿¿s chairman. Forty-three percent of analysts polled by Bloomberg have buy ratings on the stock, which is trading with a P/E of 19 based on 2012 earnings estimates. On average, analysts surveyed by Bloomberg have a $13.70 price target on the stock, which is 43% greater than recent levels.
Since this summer's market low, small-cap stocks have been outperforming large-cap stocks. Here are small caps with 'persistently strong top-line growth and improving fundamentals,' according to RBC Capital Markets.