Forestar Group stock rises 6.5% despite EPS miss as JMP reiterates $30 target

Published 23/07/2025, 10:02
Forestar Group stock rises 6.5% despite EPS miss as JMP reiterates $30 target

Investing.com - Forestar Group (NYSE:FOR) stock rose 6.5% to $23.89 following its fiscal third-quarter 2025 results, despite missing consensus earnings estimates. The stock has shown strong momentum, gaining over 8% in the past week. According to InvestingPro analysis, the company appears undervalued based on its Fair Value estimate.

JMP Securities reiterated its Market Outperform rating and $30 price target on the land development company, representing 85% of forward book value. The $1.21 billion market cap company trades at an attractive P/E ratio of 6.9x, with analyst targets ranging from $22 to $30.

Forestar reported earnings per share of $0.65, beating JMP’s expectation of $0.58 but falling short of the $0.71 consensus estimate. The company made minor adjustments to its guidance, with lot sales trending slightly lower but offset by better pricing, leaving revenue guidance unchanged.

JMP noted it was impressed with Forestar’s ability to drive pricing in a market where homebuilders face customer affordability headwinds, which "speaks volumes regarding the demand for third-party lot development."

The dynamics surrounding Forestar’s guidance adjustment were similar to those of D.R. Horton (NYSE:DHI), its majority shareholder, which reported earnings earlier the same day.

In other recent news, Forestar Group Inc . announced its third-quarter 2025 earnings, which showed a miss in both earnings per share (EPS) and revenue compared to analyst expectations. Despite this shortfall, the company’s stock experienced a rise, indicating investor optimism about Forestar’s strategic growth initiatives and market expansion efforts. The earnings report highlights the challenges the company faces in meeting analyst projections. However, the positive market reaction suggests that investors may have confidence in Forestar’s future plans. No recent mergers or acquisitions were reported. Analyst upgrades or downgrades were not mentioned in the latest updates. These recent developments provide insight into the company’s current financial standing and market perception.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.