NEW YORK (TheStreet) -- D.R. Horton (DHI) shares are rising, up 1.3% to $22.91, on Tuesday after analysts at Sterne Agee raised the company's earnings estimates citing a recent acquisition as a reason for the optimism.
D.R. Horton acquired the home building arm of Crown Communities for $210 million on Friday. During fiscal year 2013 Crown reported revenue of $375 million.
Sterne Agee believes that the acquisition will increase the company's presence in the Atlanta region where Crown Communities is based.
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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 number of 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, growth in earnings per share, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows: