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PulteGroup, Inc. (PHM) is one of America’s largest homebuilders, headquartered in Atlanta, Georgia. It acquires and develops land for residential use and constructs and sells single-family detached homes, townhomes, condominiums, and duplexes. Operating in U.S. markets, the company serves diverse homebuyers through brands including Centex, Pulte Homes, Del Webb, and DiVosta Homes. The company has a market capitalization of $22.76 billion, which makes it a “large-cap” stock.
PulteGroup’s shares reached a 52-week low of $108.49 on May 19, but are up 10.1% from that level. Over the past three months, the stock has dropped 2.7%, as investors weigh persistent housing-market headwinds. Meanwhile, the broader S&P 500 Index ($SPX) is up marginally over the past three months. Therefore, PHM has clearly underperformed over this period.
PulteGroup’s stock is down over the past year as investors price in a tougher housing backdrop and persistent affordability pressures. Over the past 52 weeks, the stock has declined 11.4%, while the S&P 500 index is up 14.7%. PulteGroup’s stock is up 1.9% year-to-date (YTD), while the broader index is up 10.8%. The company’s shares have traded below its 200-day moving average since early September and lower than its 50-day moving average since late August.
In the second quarter, PulteGroup experienced volatile interest rates and strained profitability, which led to a decline in its financials compared to the prior-year quarter. The company’s home-sale revenue fell 11% year-over-year (YOY) to $3.80 billion, driven by an 8% drop in closings to 6,997 homes and a 3% decline in average selling price to $544,000.
Wall Street analysts have mixed views on PulteGroup’s bottom-line trajectory. For the current quarter, its profit is expected to decline by 11.2% YOY to $2.63 per share. For fiscal 2026, the company’s bottom line is projected to decrease by 12% annually to $10.07 per share, followed by a 9.8% increase to $11.06 per share in fiscal 2027.
We compare PulteGroup’s performance with that of another residential construction stock, D.R. Horton, Inc. (DHI), which is down 18.5% over the past 52 weeks, 2.7% YTD, and 9.6% over the past three months. Therefore, PulteGroup has clearly outperformed over these periods.
Wall Street analysts are moderately bullish on PulteGroup’s stock. The 17 analysts covering it have a consensus rating of “Moderate Buy.” The mean price target of $141.75 implies an 18.6% upside from current levels. The Street-high price target of $166 indicates a 38.9% upside.
