When homebuilders D.R. Horton (DHI) and PulteGroup (PHM) posted strong results, their stock soared. DHI stock gained ~17% on Tuesday, while PulteGroup gained 11.52%. These are at levels not seen since January.
DHI stock will benefit from an aggressive stock buyback outlook. Its strong Q3 helped, too, after it earned $3.36 a share. Revenue of $9.23 billion beat expectations. Despite weak real estate markets in Florida, D.R. Horton’s results did not weaken. The southeast market accounted for 26% of sales.
PulteGroup posted a -4.3% Y/Y revenue change. This is an impressive result, since the housing market is weak. High mortgage rates are hurting the market, yet the firm met its closings rate. It also has a healthy backlog.
In the aerospace sector, Lockheed Martin (LMT) lost 10.81% yesterday to close at $410.74. It unexpectedly posted lower earnings. It took a $1.6 billion program-related charge. It identified cost overruns and performance issues in the Aeronautics program. The Canadian Maritime Helicopter Program cost it $570 million in losses. $169 million in other charges are due to asset write-offs from the U.S. Air Force’s next-generation fighter jet program.
LMT stock is attractive at this level. The write-offs are non-cash in nature, and the cash flow guidance is unchanged for the year.
Investors may also consider RTX (RTX). The firm posted results that warned of tariff-related costs in the quarter and this year.
