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Byline: Monika Tjia
After breaking out of a 16-week base on April 25, D.R. Horton hit a new high on April 30. But since then it has pulled back, forming a nine-week base. Within its consolidation it corrected 26%, bouncing off its 200-day moving average in late May. It's now 6% off its high.
Last quarter, the single-family home builder's earnings rose 29% to 67 cents a share. Analysts predict fiscal 2001 profit will rise 26% vs. a 23% increase in 2000, First Call says.
In the past 13 quarters, sales growth has ranged from 10% to 56%. In the latest quarter, its after-tax profit margin hit 5.7%, the best showing in at least 13 quarters.
In the past nine weeks, its Building/Resident-Commercial group has dropped to 73rd from No. 1 among the 197 industries tracked by IBD. But the group ...