Nasdaq and Travelers Outshine D.R. Horton's Decline
The largest homebuilding company in the U.S., D.R. Horton (DHI), is losing orders as competition picks up, causing its backlog to drop by 3.6% on average over the past two years.
This decline, combined with a 16% annual contraction in earnings per share over the last two years and waning returns on capital, suggests D.R. Horton's profit engines are losing steam.
Nasdaq (NDAQ), on the other hand, has above-market 13.8% annual sales growth over the past two years, thanks to its unique value proposition and successful share buybacks.
Travelers (TRV) also shows promise with increased pre-tax profits and expected book value per share growth of 19.8% for the next year.