Atlanta, Georgia-based PulteGroup, Inc. (PHM) engages within the homebuilding enterprise. Valued at $25.4 billion by market cap, the corporate sells and constructs houses, and purchases, develops, and sells residential land and develops lively grownup communities. PHM additionally offers mortgage financing, title insurance coverage, and different providers to residence patrons.
Shares of this homebuilding large have underperformed the broader market over the previous 12 months. PHM has gained 5% over this timeframe, whereas the broader S&P 500 Index ($SPX) has rallied almost 16.4%. Nonetheless, in 2025, PHM inventory is up 18.2%, surpassing the SPX’s 9.7% rise on a YTD foundation.
Narrowing the main focus, PHM’s underperformance can also be obvious in comparison with the SPDR S&P Homebuilders ETF (XHB). The exchange-traded fund has gained about 2.1% over the previous 12 months. Nonetheless, PHM’s double-digit features on a YTD foundation outshine the ETF’s 8.5% returns over the identical timeframe.
PulteGroup is underperforming amid challenges within the housing business, together with excessive rates of interest and unaffordable residence costs. Regardless of robust demand for homeownership, gross sales have slumped attributable to financial uncertainty and rising borrowing prices.
On Jul. 22, PHM shares closed up greater than 11% after reporting its Q2 outcomes. Its EPS of $3.03 surpassed Wall Road expectations of $2.92. The corporate’s income was $4.40 billion, topping Wall Road forecasts of $4.37 billion.
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For the present fiscal 12 months, ending in December, analysts count on PHM’s EPS to say no 14.6% to $11.34 on a diluted foundation. The corporate’s earnings shock historical past is spectacular. It beat the consensus estimate in every of the final 4 quarters.
Among the many 16 analysts masking PHM inventory, the consensus is a “Average Purchase.” That’s primarily based on 9 “Robust Purchase” rankings, one “Average Purchase,” 5 “Holds,” and one “Robust Promote.”
This configuration is extra bullish than a month in the past, with eight analysts suggesting a “Robust Purchase.”
On Jul. 23, JPMorgan Chase & Co. (JPM) analyst Michael Rehaut maintained a “Purchase” score on PHM and set a worth goal of $123.
The imply worth goal of $135.85 represents a 5.6% premium to PHM’s present worth ranges. The Road-high worth goal of $163 suggests an formidable upside potential of 26.7%.
On the date of publication, Neha Panjwani didn’t have (both straight or not directly) positions in any of the securities talked about on this article. All info and information on this article is solely for informational functions. This text was initially revealed on Barchart.com
