Parnassus Investments, an investment management company, released the “Parnassus Core Equity Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S equities rose in the third quarter and the Fund (Investor Shares) appreciated 5.50% (net of fees) in the quarter underperforming the S&P 500 Index’s 5.89% return. The favorable stock selection in the Materials and Financials sector contributed to the fund’s performance in the quarter while stock selection in the Information Technology and Industrials sectors detracted. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Parnassus Core Equity Fund highlighted stocks like D.R. Horton, Inc. (NYSE:DHI), in the third quarter 2024 investor letter. D.R. Horton, Inc. (NYSE:DHI) is a homebuilding company. The one-month return of D.R. Horton, Inc. (NYSE:DHI) was 3.36%, and its shares gained 37.30% of their value over the last 52 weeks. On November 25, 2024, D.R. Horton, Inc. (NYSE:DHI) stock closed at $172.94 per share with a market capitalization of $55.543 billion.
Parnassus Core Equity Fund stated the following regarding D.R. Horton, Inc. (NYSE:DHI) in its Q3 2024 investor letter:
“D.R. Horton, Inc. (NYSE:DHI), a leading homebuilder, saw its shares rise amid confidence that a lower-rate environment would lead to more affordable housing prices and a corresponding increase in home buying. Further, investors were impressed by the company’s execution and management’s intention to deploy cash to a stock buyback.”
A construction site of a multi-family residential complex, a modern urban skyline in the background.
D.R. Horton, Inc. (NYSE:DHI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 69 hedge fund portfolios held D.R. Horton, Inc. (NYSE:DHI) at the end of the third quarter which was 62 in the previous quarter. D.R. Horton, Inc.’s (NYSE:DHI) fiscal fourth quarter earnings decreased 12% to $3.92 per diluted share compared to $4.45 per share in the prior year quarter. While we acknowledge the potential of D.R. Horton, Inc. (NYSE:DHI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed D.R. Horton, Inc. (NYSE:DHI) and shared the list of most profitable value stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.