Citizens Highlights Forestar Group (FOR) Revenue Beat Despite Lower Lot Sales

Forestar Group Inc. (NYSE:FOR) ranks among the most undervalued REIT stocks to buy right now. Following Forestar Group Inc. (NYSE:FOR)’s fiscal first quarter 2026 results, Citizens reaffirmed its Market Outperform rating and $35 price target on the company’s shares on January 21. Forestar Group Inc. (NYSE:FOR) reported $273 million in revenue, which was 2.83% higher than the expected $265.48 million. Meanwhile, the company’s earnings per share of $0.30 came in lower than both Citizens’ projection of $0.34 and the average forecast of $0.32. The earnings miss was mostly attributed to a 17% year-over-year drop in lots sold.

Forestar Group Inc. (NYSE:FOR) somewhat countered the lower volume by raising its average selling price, which was accomplished by marketing larger lots that had more exposure to Western markets. Citizens observed that the weaker-than-expected performance reflected persistent affordability issues in the entry-level real estate market, where house prices continue to be high in comparison to mortgage rates.

Forestar Group Inc. (NYSE:FOR) is one of the largest residential community developers in the United States which primarily acquires entitled real estate and develops it into finished residential lots for sale to homebuilders.

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Disclosure: None. This article is originally published at Insider Monkey.