Forestar (FOR) 2026Q1 Earnings Preview: Upside Risk on Analyst Optimism

Forward-Looking Analysis

Analysts project strong optimism for Forestar’s 2026Q1 performance, with a consensus rating of “Moderate Buy” from seven Wall Street analysts. Four analysts issued “Buy” ratings, while three recommended “Hold,” reflecting confidence in the company’s growth trajectory. The average 12-month price target of $33.00 implies a 25.91% upside from the current price of $26.21, with the highest target at $36.00 and the lowest at $29.00. Recent data highlights a 1.64 beta, indicating higher volatility than the S&P 500, but institutional ownership remains robust at 35.9%. Competitor comparisons favor Forestar’s higher revenue ($1.27B vs. Getty Realty’s $165.59M) and stronger EPS ($2.91 vs. $1.38). Analysts also note improved media sentiment and a recent upgrade within the past 90 days, signaling renewed investor interest.

Historical Performance Review

Forestar’s 2025Q4 results showed revenue of $670.50 million, net income of $86.90 million, and EPS of $1.71, with gross profit at $149.60 million. The company outperformed peers in profitability metrics, including a 11.45% net margin and 6.19% return on assets. These figures underscore Forestar’s operational efficiency and resilience in a competitive real estate sector, setting a strong baseline for 2026Q1 expectations.

Additional News

Recent analyst coverage emphasizes Forestar’s favorable positioning against competitors like Getty Realty and Hudson Pacific Properties, with stronger revenue and earnings. The company’s 25.91% projected upside aligns with its recent outperformance in market sentiment (average score of 1.67) and institutional confidence. While no direct Q1 2026 guidance was provided, the “Moderate Buy” consensus and elevated price targets suggest analysts anticipate continued growth, driven by real estate sector tailwinds and Forestar’s strategic execution.

Summary & Outlook

Forestar’s 2026Q1 outlook appears bullish, supported by robust historical performance, analyst optimism, and favorable sector dynamics. With revenue and EPS growth likely to outpace peers, the company’s 25.91% projected upside and strong institutional backing position it as a top real estate play. Risks include market volatility and sector-specific challenges, but Forestar’s operational efficiency and competitive positioning mitigate these concerns. Investors should monitor Q1 results for confirmation of sustained momentum, with a clear bias toward upside potential.