D. R. Horton - 60% Upside Opportunity?

Is there an opportunity for a considerable gain on a homebuilding company DHI that operates in 31 states, before potential recession in the US.

Fundamental indicators:

• Revenue and Profits - demonstrated consistent and explosive long-term earnings growth over the past 10 years
  
• Profit margin - showing higher efficiency every year and currently at 16.5%
  
• P/E - under-priced with just 4.8x ratio
  
• Liabilities - no problems with debt
  

Technical Analysis (Elliott Waves):

• Although it is a complex scenario but it is likely that there is an Ending Diagonal forming in the final fifth wave since the global correction completed in March 2020
  
• Wave 1 with a zigzag culminated in May 2021 and since then second wave has been forming with an Extended Flat pattern where wave C is currently getting completed
  
• Wave 3 is also expected to be formed by a zigzag targeting price range of $111 to $130 representing 0.5 and 0.786 Fibonacci retracement levels respectively
  

What do you think about this scenario for DHI ?

Please share your thoughts in the comments and like this idea if you would like to see more stocks analysed using Elliott Waves.