NEW YORK (TheStreet) -- Shares of D.R. Horton Inc. are higher by 2.18% to $27.71 in mid-morning trading on Tuesday, following data from the Commerce Department which showed new home sales in February grew by 7.8% to an 539,000 annualized pace. New home sales increased the most last month since February of 2008, Bloomberg reports, adding that the median forecast of 76 economists polled by the publication called for the pace to drop by 464,000. Job growth, soft but positive income growth, low mortgage rates, and gradually easing access to credit helped to boost new home sales in February, Gus Faucher a senior economist at PNC Financial Services Group told Bloomberg. "I would expect we'd see further gains over the course of this year," Faucher added. Separately, TheStreet Ratings team rates D R HORTON INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate D R HORTON INC (DHI) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, solid stock price performance and growth in earnings per share. 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 0.8%. Since the same quarter one year prior, revenues rose by 37.8%. 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 0.71, 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 not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. 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 8.3% 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 ($1.85 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 15.7% when compared to the same quarter one year prior, going from $123.20 million to $142.50 million. You can view the full analysis from the report here: DHI Ratings Report Must Read: Warren Buffett's Top 25 Stocks for 2015
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