D.R. Horton’s (DHI, Financial) stock surged 24.9%, adding 0.7% to the Fund’s total return as the second-largest contributor. The largest home builder in the United States delivered better-than-expected earnings, driven by solid demand and strong pricing for new homes. The company saw an encouraging start to the spring selling season and limited home inventory nationwide, benefiting new home sales relative to existing ones. We remain excited about the company’s long-term growth prospects, as it benefits from its significant scale, additional share gains, a strong balance sheet and a long runway to consolidate smaller builders.
From the Parnassus Value Equity Fund (Trades, Portfolio)'s second-quarter commentary.
