PulteGroup Reports Mixed Performance Amid Market Challenges
PulteGroup, Inc. (PHM), a prominent U.S. homebuilder with a market capitalization of $20.5 billion, specializes in various residential properties, including single-family homes, townhomes, condominiums, and duplexes marketed under multiple brand names. The company also operates in mortgage financing, title insurance, and closing services through its Homebuilding and Financial Services segments, supporting homebuyers across the nation.
However, the company’s stock has struggled in comparison to broader market trends over the past year. PHM has decreased by 17.2% in the last 52 weeks, while the S&P 500 Index ($SPX) has seen a gain of 10.7%. Year-to-date, PulteGroup shares are down 7.2%, contrasting with SPX, which has experienced only a slight decline.
When examined against industry benchmarks, PulteGroup has underperformed compared to the Consumer Discretionary Select Sector SPDR Fund (XLY), which has returned 19.7% in the same period.
On April 22, PulteGroup’s shares rose 8.4% following the announcement of stronger-than-expected first-quarter results for 2025. The company reported earnings per share (EPS) of $2.57 and revenues of $3.9 billion, exceeding analyst expectations. This performance was bolstered by a home sale gross margin of 27.5% and a 6% increase in the average sales price to $570,000, despite a 7% decline in home closings to 6,583 homes.
Looking ahead, analysts project that PHM’s EPS will decline by 13.6% year-over-year to $11.48 for the fiscal year ending December 2025. Nonetheless, PulteGroup has a solid track record, having surpassed consensus earnings estimates in the last four quarters.
The consensus rating among 16 analysts who follow PulteGroup is classified as a “Moderate Buy,” supported by nine “Strong Buy” ratings, one “Moderate Buy,” and six “Holds.”
On April 16, Oppenheimer analyst Tyler Batory adjusted the price target for PulteGroup to $125 while retaining an “Outperform” rating.
Currently, PHM is trading below the mean price target of $124.96. The highest price target on the Street, set at $165, suggests a potential upside of 62.6% from current price levels.
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 is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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