Forestar Group Inc. is a residential lot development company in the United States. It acquires land and develops infrastructure for single-family residential communities, then sells finished single-family lots to local, regional, and national homebuilders. Incorporated in 2005, the company is headquartered in Arlington, Texas, and operates as a subsidiary of D.R. Horton, Inc.
Forestar Group Posts $407 Million Q2 Revenue, Misses Estimates as Real Estate Services Stocks Slide
Forestar Group reported second-quarter revenues of $407 million, up 4.2% year on year but 7.7% below analysts' expectations, in a softer quarter that also saw a significant miss on EPS estimates and full-year revenue guidance slightly below consensus. Chairman of the Board Donald J. Tomnitz said the Forestar team delivered solid third quarter results, including a 4% increase in revenues to $407.0 million and a 12% increase in pre-tax income to $48.7 million, with liquidity rising to $1.1 billion. Among the 13 consumer discretionary real estate services stocks tracked, revenues as a group beat consensus by 11.5% while next-quarter revenue guidance came in 4.4% below, and share prices have fallen 14.3% on average since the latest results. Howard Hughes Holdings posted the group's best quarter with revenues of $1.12 billion, up 330% year on year and 139% above expectations, while Offerpad was the slowest, with revenues of $77.65 million, down 51.6% year on year and 8.9% short of estimates. Forestar Group delivered the weakest full-year guidance update among its peers, and its stock is down 8.1% since reporting, trading at $25.93.
FOR · Capital · Negative Forestar missed Q2 revenue and EPS estimates and delivered the weakest full-year guidance among peers, with its stock down 8.1% since reporting.
HHH · Capital · Positive Howard Hughes posted the group's best quarter with revenues of $1.12 billion, up 330% year on year and 139% above expectations.
OPAD · Capital · Negative Offerpad was the slowest in the group, with revenues of $77.65 million, down 51.6% year on year and 8.9% short of estimates.
Forestar Group reports rise in third-quarter income
Forestar Group Inc. announced an increase in third-quarter profit. Net income rose to $35.9 million, or $0.70 per share, from $32.9 million, or $0.65 per share, in the same period last year. Revenue grew 4.2% to $407.0 million from $390.5 million a year earlier. The company issued full-year revenue guidance of $1.6 billion to $1.7 billion.
D.R. Horton Faces Land Pipeline Risk as Forestar Cash Burn Raises Questions
D.R. Horton is confronting potential land pipeline risk as its majority-owned subsidiary Forestar Group experiences weak revenue growth and ongoing cash burn. Forestar, which sources and develops lots for the homebuilder, links its financial health directly to D.R. Horton's future community launches. Concerns around Forestar's cash usage could pressure funding, lot availability, and project timing, potentially affecting D.R. Horton's ability to bring new homes to market compared with competitors such as Lennar or PulteGroup. Investors are watching how D.R. Horton manages Forestar's capital needs, as any shifts in lot supply or internal funding support may influence margins, growth options, and capital allocation priorities.
Alcoa, Forestar, and Eni Trade at Deep Discounts With Catalysts Ahead
Alcoa, Forestar Group, and Eni are trading at valuations well below the broader market, each with company-specific catalysts that have yet to be fully priced in. Alcoa shares have fallen 34% over the past month to around $48.60, giving it a forward P/E of 11 and an EV/EBITDA of 9, while free cash flow surged 1,250% year over year to $567 million after the company set production records at five smelters. Forestar Group trades at just 0.90 times book value with a trailing P/E of 10, and its fiscal second-quarter revenue rose 7% to $374.3 million, supported by 24,100 lots under contract representing roughly $2.2 billion of future revenue. Eni raised its 2026 cash flow guidance by 20% to €13.8 billion and nearly doubled its buyback program to €2.8 billion, while paying a 5.2% dividend yield and trading at a forward P/E of 8. Each stock carries distinct risks, including aluminum price sensitivity for Alcoa, housing market headwinds for Forestar, and crude oil and currency exposure for Eni.
AA · Capital · Positive Alcoa set production records and free cash flow surged 1,250% to $567 million, yet trades at a low P/E of 11, suggesting undervaluation.
ENI.XETRA · Capital · Positive Eni raised 2026 cash flow guidance by 20% to €13.8 billion and nearly doubled buyback to €2.8 billion, with a 5.2% dividend yield and low P/E of 8.
FOR · Capital · Positive Forestar trades at 0.90 times book value with a trailing P/E of 10, and has $2.2 billion of future revenue under contract, indicating undervaluation.
StockStory flags Chegg, Progyny, and Forestar Group as value stocks facing uphill battles
StockStory identified Chegg, Progyny, and Forestar Group as three value stocks that may be value traps. Chegg, trading at 3.7 times forward EV/EBITDA, has seen services subscribers decline 23.3% annually over two years and falling EBITDA profits. Progyny, at 13.1 times forward P/E, faces soft demand with disappointing unit sales and an unchanged adjusted operating margin. Forestar Group, at 10.9 times forward P/E, posted annual revenue growth of 8.8% over five years, below sector standards, and shows eroding returns on capital.
Howard Hughes Holdings Leads Real Estate Services Q1 Earnings with 20.4% Revenue Beat
Howard Hughes Holdings reported first-quarter revenues of $235.9 million, up 18.4% year on year and exceeding analysts' expectations by 20.4%, making it the top performer among 14 tracked consumer discretionary real estate services stocks. The group as a whole beat revenue consensus estimates by 3.8% but issued next-quarter revenue guidance 6.7% below expectations, and their shares have fallen an average of 8.2% since reporting. Howard Hughes also beat EPS estimates, and its stock rose 6.3% to $67.50. Other notable results included Marcus & Millichap with revenues of $171.5 million, up 18.2% and beating by 5.7%, while RE/MAX posted the weakest quarter with revenues of $70.23 million, down 5.7% and missing estimates by 2.7%. JLL reported revenues of $6.39 billion, up 11.1% and beating by 6.6%, and Forestar Group met expectations with revenues of $374.3 million, up 6.6%.
HHH · Capital · Positive Howard Hughes beat revenue and EPS estimates, leading to a 6.3% stock price increase.
JLL · Capital · Positive JLL reported revenues of $6.39 billion, up 11.1% and beating estimates by 6.6%.
MMI · Capital · Positive Marcus & Millichap reported revenues of $171.5 million, up 18.2% and beating by 5.7%.
RMAX · Capital · Negative RE/MAX posted the weakest quarter with revenues down 5.7% and missing estimates by 2.7%.
FOR · Capital · Neutral Forestar Group met revenue expectations but is part of a group whose shares fell 8.2% on average; no specific impact from this article.
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