NEW YORK (TheStreet) -- Shares of D.R, Horton Inc. are higher by 1.97% to $25.85 in mid-morning trading on Thursday, as homebuilder stocks continue to rise following Wednesday's Bloomberg report suggesting that President Obama will announce plans to cut mortgage insurance premiums issued by the Federal Housing Administration, during a speech in Phoenix, AZ, today. The announcement is part of the Obama administration's plan to expand and promote homeownership, Bloomberg said. The plan will cut FHA insurance premiums on mortgages with low down payments and could save a borrower $1,000 per year on a $200,000 loan, the Wall Street Journal reports. The new housing policy is said to be going into effect at the end of January. Exclusive Report: Jim Cramer's Best Stocks For 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. The program is designed for borrowers who have little cash for down payments in mind, such as a first time home-buyer, the Journal noted. The FHA doesn't issue loans but insures lenders in the event of a default on a mortgage with a down payment as small as 3.5%, borrowers have to pay for the insurance, the Journal said. President Obama will deliver his speech from Central High School in Phoenix, at 10:45am MST, 12.45pm EST., according to the White House website schedule. Separately, TheStreet Ratings team rates D R HORTON INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation: "We rate D R HORTON INC (DHI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth greatly exceeded the industry average of 10.1%. Since the same quarter one year prior, revenues rose by 32.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share. The debt-to-equity ratio is somewhat low, currently at 0.72, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year. D R HORTON INC has improved earnings per share by 12.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, D R HORTON INC increased its bottom line by earning $1.51 versus $1.34 in the prior year. This year, the market expects an improvement in earnings ($1.82 versus $1.51). The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Household Durables industry average. The net income increased by 19.1% when compared to the same quarter one year prior, going from $139.50 million to $166.20 million. You can view the full analysis from the report here: DHI Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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