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Atlanta, Georgia-based PulteGroup, Inc. (PHM) acquires and develops land to construct residential buildings. It offers various home designs, including single-family detached, townhomes, condominiums, and duplexes. With a market cap of $25.8 billion, PulteGroup operates through the Homebuilding and Financial Services segments.
The homebuilder has substantially outperformed the broader market over the past year. Over the past 52 weeks, PHM gained 54.6%, outpacing the S&P 500 Index’s ($SPX) 26.1% returns. In 2024, PHM is up 18.8% compared to SPX’s 16.5% gains on a YTD basis.
Narrowing the focus, PHM also outperformed the S&P Homebuilders SPDR’s (XHB) 39.2% returns over the past 52 weeks and 15.8% gains on a YTD basis.
Shares of PulteGroup saw marginal gains after its Q2 earnings release on Jul. 23. The company’s revenue surged 9.8% annually to $4.6 billion, while net income rose 12.3% to $809.1 million.
Despite the adverse macroeconomic conditions, PulteGroup’s home sale revenues increased 9.6% to $4.4 billion, and its average selling price grew by 2% to $549,000 per home compared to the year-ago quarter, demonstrating its operational resilience.
For the current fiscal year, ending in December, analysts expect PulteGroup’s EPS to grow 10.1% annually to $12.90. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 16 analysts covering the PHM stock, the consensus rating is “Moderate Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” and seven “Holds.”
This configuration is slightly less bullish than a month ago, with 11 analysts suggesting a “Strong Buy.”
On Aug. 16, Wedbush analyst Jay McCanless maintained a “Hold” with a price target of $115.
PHM’s mean price target of $141.60 represents a premium of 15.5% from current price levels. The Street-high target of $198 indicates a potential upside of 61.5%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
