NEW YORK (TheStreet) -- DR Horton (DHI) was rising 2.63% to $24.77 at 3:12 p.m. on Wednesday after the U.S. government announced that sales of newly-built single family homes rose more than expected in January. DR Horton, the largest new home builder in the U.S., climbed as a result.
Sales rose to a seasonally adjusted annual rate of 468,000, which marked a pace 9.6% greater than the revised rate for December and 2.2% greater than Jan. 2013. Analysts had expected a drop to 400,000. An estimated 184,000 new homes were for sale at the end of January, which at the current sales pace accounts for a 4.7-month supply, a slight decrease from the five-month supply at the end of December. The median sales price of new homes sold in January dipped to $260,100 from $270,200 one month earlier.
The Midwest was the only region in the U.S. that did not have a sales increase, as winter storms heavily affected the area.
TheStreet Ratings team rates D R HORTON INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate D R HORTON INC (DHI) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels, good cash flow from operations, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."