The low valuation multiples for value stocks provide a margin of safety that growth stocks rarely offer.
However, the challenge lies in determining whether these cheap assets are genuinely undervalued or simply on sale due to their potentially deteriorating business models.
Let’s dig into the relative performance of Forestar Group (NYSE:FOR) and its peers as we unravel the now-completed Q4 consumer discretionary earnings season.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at consumer discretionary stocks, starting with Forestar Group (NYSE:FOR).
Forestar Group’s fourth quarter results were met with a significant negative market reaction, reflecting concerns about underlying performance despite a top-line revenue beat. Management attributed the quarter’s revenue growth to a greater mix of higher-priced lot deliveries and expansion in western markets. However, lower sales volumes and a decline in operating margin signaled ongoing challenges. CFO Jim Allen highlighted that the quarter’s margins were impacted by project mix and a specific low-margin track sale, with normalized gross margins remaining under pressure from slower demand and affordability constraints.
The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%.
But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
Residential lot developer Forestar Group (NYSE:FOR) reported Q4 CY2025 results beating Wall Street’s revenue expectations, with sales up 9% year on year to $273 million. The company expects the full year’s revenue to be around $1.65 billion, close to analysts’ estimates. Its non-GAAP profit of $0.30 per share was in line with analysts’ consensus estimates.
Shares of residential lot developer Forestar Group (NYSE:FOR) fell 5.1% in the morning session after the company reported mixed fourth-quarter 2025 results, with an earnings miss overshadowing a revenue beat.
Residential lot developer Forestar Group (NYSE:FOR) beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 9% year on year to $273 million. The company expects the full year’s revenue to be around $1.65 billion, close to analysts’ estimates. Its GAAP profit of $0.30 per share was 5.5% below analysts’ consensus estimates.
Residential lot developer Forestar Group (NYSE:FOR) beat Wall Street’s revenue expectations in Q3 CY2025, with sales up 21.6% year on year to $670.5 million. Its non-GAAP profit of $1.70 per share was 34.9% above analysts’ consensus estimates.
As of today, January 8, 2026, the American housing market stands at a critical crossroads, and no company better exemplifies the tensions of this moment than D.R. Horton (NYSE: DHI). Long known as "America’s Builder," D.R. Horton has dominated the residential landscape for over two decades, consistently delivering more homes than any other company in [...]
