D.R. Horton (DHI) Surged in Q3 Following Earnings That Surpassed Expectations

Heartland Advisors, an investment management company, released its “Heartland Mid Cap Value Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The portfolio increased 1.63% in the quarter, lagging behind the Russell Midcap® Value Index’s 6.18% gain. Stock selection was the primary contributor to the underperformance. The market witnessed the trends from Q2 accelerate, with optimism about the AI boom and rising electricity demand pushing large- and mid-cap growth stocks to new highs regardless of business model quality or valuation. Thus, the third quarter is a period when focusing on valuations can be detrimental. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Heartland Mid Cap Value Fund highlighted stocks such as D.R. Horton, Inc. (NYSE:DHI). D.R. Horton, Inc. (NYSE:DHI) is a homebuilding company. The one-month return of D.R. Horton, Inc. (NYSE:DHI) was -11.92%, and its shares lost 18.99% of their value over the last 52 weeks. On October 10, 2025, D.R. Horton, Inc. (NYSE:DHI) stock closed at $151.58 per share, with a market capitalization of $45.19 billion.

Heartland Mid Cap Value Fund stated the following regarding D.R. Horton, Inc. (NYSE:DHI) in its third quarter 2025 investor letter:

“Consumer Discretionary. Our best-performing holding in the quarter, D.R. Horton, Inc. (NYSE:DHI), came from our Deep Value bucket. The largest homebuilder in the country, DHI enjoys around a 10% market share with scale advantages in a highly fragmented industry.

D.R. Horton, Inc. (NYSE:DHI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 64 hedge fund portfolios held D.R. Horton, Inc. (NYSE:DHI) at the end of the second quarter, down from 67 in the previous quarter. While we acknowledge the potential of D.R. Horton, Inc. (NYSE:DHI) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.