Wall Street analysts are inherently cautious; they usually prefer to play it safe to safeguard their careers and reputation. In the homebuilding segment of real estate, these analysts adopted a bearish outlook, lowering price targets for major U.S. builders. Although caution is justified at times, recent market signals indicate there may be one final rally in the sector.
Shares of PulteGroup Inc. (NYSE: PHM) are up nearly 1% after reporting its quarterly earnings results, which were mixed at best when taken at face value. Today, investors are interested in buying this stock on the dip, as PulteGroup now trades at 80% of its 52-week high, placing it at the tipping point between bull market and bear market territory. Surely, this discount increases the margin of safety in the stock, but it doesn’t mean there are clear skies ahead for PulteGroup.
