What Happened?
Shares of residential lot developer Forestar Group (NYSE:FOR) fell 5.1% in the morning session after the company reported mixed fourth-quarter 2025 results, with an earnings miss overshadowing a revenue beat.
The company's revenue grew 9% year-over-year to $273 million, exceeding analysts' expectations. However, profitability weakened, as earnings per share came in at $0.30, missing the consensus estimate of $0.32 and declining from the prior year. Adding to the negative sentiment, the number of lots sold fell by 16.7% year-over-year, indicating that the revenue growth was driven by higher prices rather than increased volume. The operating margin also shrank to 6.8% from 8.1% a year ago, further pressuring the bottom line.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Forestar Group? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Forestar Group’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Forestar Group is up 7.4% since the beginning of the year, and at $26.12 per share, it is trading close to its 52-week high of $28.72 from September 2025. Investors who bought $1,000 worth of Forestar Group’s shares 5 years ago would now be looking at an investment worth $1,155.
Microsoft, Alphabet, Coca-Cola, Monster Beverage—all began as under-the-radar growth stories riding a massive trend. We’ve identified the next one: a profitable AI semiconductor play Wall Street is still overlooking.Go here for access to our full report, it’s free.