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Forestar Group Inc (NYSE:FOR). shares tumbled to a 52-week low of $18.6, reflecting a stark downturn in the company’s market performance over the past year. According to InvestingPro data, the stock is trading at attractive multiples with a P/E ratio of 6.8x and price-to-book of 0.59x, suggesting potential undervaluation compared to peers. The real estate and land development firm has faced significant headwinds, with its stock price enduring a precipitous decline of 44.26% over the past year. Despite these challenges, analysts maintain optimistic price targets between $30-36, and InvestingPro analysis indicates a "GOOD" overall financial health score. Investors have shown concern as the company navigates through a challenging economic landscape, marked by fluctuating interest rates and a cooling housing market, which have collectively weighed on Forestar’s growth prospects and investor sentiment. For deeper insights into FOR’s valuation and growth potential, access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Forestar Group Inc. reported second-quarter earnings that did not meet analyst expectations, leading to a downward revision of its full-year outlook. The company announced earnings per share of $0.62, falling short of the consensus estimate of $0.67. Revenue for the quarter reached $351 million, which was below the projected $386.14 million, though it marked a 5% increase from the previous year. Forestar also adjusted its fiscal 2025 revenue guidance to a range of $1.5-1.55 billion, lower than both its previous forecast and the $1.647 billion analysts anticipated. The company now expects to deliver 15,000-15,500 lots this fiscal year, a reduction from its earlier outlook. Despite these challenges, Forestar sold 3,411 lots during the quarter, a 4% increase. The company ended the quarter with $174.3 million in cash and $617.7 million available on its credit facility. Additionally, in March, Forestar issued $500 million in new senior notes, using part of the proceeds to repurchase $329.4 million of existing notes.
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