Analyst Note
| Brian Bernard |Shares of no-moat D.R. Horton traded higher on Jan. 24 after the homebuilder released its fiscal first-quarter 2023 results (ended Dec. 31). We believe the market reacted favorably to management’s cautiously optimistic commentary on recent sales trends. Management said sales activity increased during the first few weeks of January, and cancellation rates, while still elevated, improved slightly. Management is also optimistic that normal seasonality will return (typically, second-quarter orders increase 50% sequentially).