PulteGroup, Inc. Shows Mixed Performance Amid Strong Earnings Report
Valued at a market cap of $21.3 billion, PulteGroup, Inc. (PHM) is a major player in the homebuilding sector. Headquartered in Atlanta, Georgia, the company specializes in acquiring and developing land for residential purposes, alongside constructing homes. PulteGroup operates through two segments: Homebuilding and Financial Services.
With a market cap surpassing $10 billion, PulteGroup qualifies as a “large-cap” stock. The company’s brand portfolio includes well-known names such as Centex, Pulte Homes, Del Webb, DiVosta Homes, American West, and John Wieland Homes and Neighborhoods, giving it a presence in over 45 markets across the United States.
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Despite its stature in the market, PulteGroup has seen a decline of 29.5% from its 52-week high of $149.47. In the last three months alone, PHM dropped 4.7%, outperforming the iShares U.S. Home Construction ETF (ITB), which fell by 7.7%.
Looking at the year-to-date (YTD) performance, PulteGroup is down 3.3%, while the ITB has dipped 6.7%. Over the past 52 weeks, PulteGroup shares have decreased by 7.6%, which still surpasses ITB’s larger drop of 14.1% during the same period.
It is noteworthy that PHM has been trading below its 50-day moving average since late October of the previous year and has also fallen under its 200-day moving average since December.
On a more positive note, PulteGroup surpassed analysts’ expectations with its fourth-quarter 2024 results, resulting in a 4.9% surge in shares on January 30. The company recorded total revenue of $4.9 billion, and its adjusted earnings per share (EPS) reached $3.50. Notably, PHM’s home sale revenue grew by 13% year-over-year to $4.7 million, with a gross margin of 27.5% on those sales.
In comparison, rival Lennar Corporation (LEN) has had a more challenging time, showing a year-to-date decrease of 11.9% and a 52-week loss of 26.6%.
Although PulteGroup has outperformed its industry peers over the past year, analysts maintain a cautiously optimistic view on its future. Currently, PHM holds a consensus rating of “Moderate Buy” from the 16 analysts tracking the stock. As of now, PulteGroup is trading below the average price target of $135.03.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed in this article belong to the author and do not necessarily reflect those of Nasdaq, Inc.
