As concerns over a sharp rate hike fade, housing stocks like DR Horton (DHI -Analyst Report) are coming back into focus. Companies like DHI stand to benefit from the continuation of low mortgage rates, while a stronger economy is making homeownership a reality for more people as well.

These positive trends can be seen in DHI’s recent earnings report as homebuilding revenues for the company moved higher by 37% year-over-year, while net orders rose 22% as well. If that wasn’t enough, the backlog appears to be quite nice for DR Horton, including a 12% increase, suggesting that there is plenty of pent up demand for housing right now.

Earnings Outlook

This strong demand trend is making for an impressive earnings outlook for DHI as current quarter EPS is expected to grow over 30% (year-over-year) while the full year looks to grow earnings over 25%. But before you get concerned over these lofty growth expectations, consider that DHI has posted three straight beats, and the company has averaged a 6.5% earnings beat in the past four quarters.

For these reasons, we currently have DHI as a Zacks Rank #1 (Strong Buy) and are looking for more growth out of the company in the near future. The stock has already crushed the S&P 500 so far in 2015 and we are looking for a similar trend to close out this volatile year too.

We actually also have a ‘B’ grade for DHI on its growth metrics making it of particular interest to investors looking for this type of stock. This is due to ROE that is better than the industry, current cash flow that beats out its peers, and then projected sales growth that is nearly double the industry average too.

Bottom Line

The housing industry is looking quite strong right now and there are numerous options in the segment that could lead to gains. In fact, the industry is currently in the top 20% overall with only a single stock in the group possessing a Zacks Rank #5 (Strong Sell) out of nearly 20 companies.

But while you might have a multitude of choices here, a closer inspection of DHI is probably one of the best options. The company has solid growth prospects, a strong earnings estimate picture, and it is riding a wave of positive trends in the overall economy too, making it an excellent choice for investors looking to dive into the housing industry right now.