Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, homebuilder D.R. Horton (NYSE:DHI) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at D.R. Horton's business and see what CAPS investors are saying about the stock right now.

D.R. Horton facts

Headquarters (Founded)

Fort Worth, Texas (1978)

Market Cap

$3.67 billion



Trailing-12-Month Revenue

$3.66 billion


CEO Donald Tomnitz (since 1998)
CFO Bill Wheat (since 2003)

Return on Equity (Average, Past 3 Years)



$1.9 billion / $3.3 billion

1-Year Return



Toll Brothers (NYSE:TOL)

CAPS Members Bearish on DHI Also Bearish on

Lennar (NYSE:LEN)
Pulte Homes (NYSE:PHM)

CAPS Members Bullish on DHI Also Bullish on

General Electric (NYSE:GE)
Bank of America (NYSE:BAC)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 55% of the 1,151 members who have rated D.R. Horton believe the stock will underperform the S&P 500 going forward. These bears include yujin7 and DarthMaul09.

Three days ago, yujin7 built a convincing case against the stock:

inflated profits, government subsidies, and tax credits wear out ... 

I wonder given the current unemployment situation in the US, how can people continue paying for their houses? With lots of foreclosures still lingering, the government's extended credit deadlines for many homes will soon expire.

In a pitch from two weeks ago, DarthMaul09 echoes that bearishness:

With the number of available homes on the market, the pricing power for new homes will be limited. Credit may become more available for home buyers in the near term as the government will use all means legal and illegal to prop up the housing industry, but I doubt that the home builders can make their profits fast enough before the government's efforts collapse.

What do you think about D.R. Horton, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.