PulteGroup Inc. (PHM) is scheduled to report second-quarter 2024 results on Jul 23, before the opening bell.In the first quarter of 2024, PulteGroup demonstrated strong resilience in a high-rate environment. The company exceeded expectations with a 21.6% beat in earnings per share (EPS) and 10.1% in revenues. Year over year, adjusted EPS and revenues grew 22.1% and 10.4%, respectively. Despite market challenges, PulteGroup saw a 14% rise in net orders, increased net pricing in half of its communities, and a ...

For Immediate ReleaseChicago, IL – July 17, 2024 – Today, Zacks Equity Research discusses D.R. Horton, Inc. (DHI) , PulteGroup, Inc. (PHM) , Meritage Homes Corp. (MTH) , KB Home (KBH) and M/I Homes, Inc. (MHO) .Industry: HomebuildingLink: https://www.zacks.com/commentary/2302639/5-stocks-to-watch-from-the-promising-homebuilding-industryThe lack of existing homes for sale in the market, along with a desire to own a home, has been driving demand for the U.S. housing space, defying the challenges associated wi ...

Company Performance - PulteGroup (PHM) closed at $116.24, with a slight decline of -0.08% from the previous trading session, underperforming the S&P 500's gain of 0.28% [1] - Over the past month, PulteGroup's shares increased by 1.96%, outperforming the Construction sector's gain of 0.98% but underperforming the S&P 500's gain of 3.78% [1] - The upcoming earnings report is scheduled for July 23, 2024, with projected earnings per share (EPS) of $3.20, indicating a 6.67% increase year-over-year, and a revenue estimate of $4.48 billion, reflecting a 6.9% rise from the same quarter last year [1] Analyst Estimates - For the full year, Zacks Consensus Estimates project earnings of $12.89 per share and revenue of $17.34 billion, showing increases of +9.98% and +7.94% respectively from the previous year [2] - Recent modifications to analyst estimates indicate changing business trends, with positive revisions reflecting optimism about the company's profitability [2] Valuation Metrics - PulteGroup has a Forward P/E ratio of 9.02, which is a premium compared to the industry's average Forward P/E of 8.94 [3] - The company holds a PEG ratio of 0.51, which is lower than the average PEG ratio of 0.85 for the Building Products - Home Builders industry [3] Industry Overview - The Building Products - Home Builders industry is part of the Construction sector and currently holds a Zacks Industry Rank of 97, placing it in the top 39% of over 250 industries [4] - The Zacks Industry Rank assesses the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [4]

Core Viewpoint - PulteGroup, Inc. is navigating a challenging environment characterized by high mortgage rates, yet it has demonstrated resilience through effective strategies, resulting in positive financial performance and growth potential [1][2][9]. Group 1: Financial Performance - In Q1 2024, PulteGroup achieved a 14% year-over-year increase in net orders and set a new record for first-quarter gross margins at 29.6%, exceeding guidance of 28% to 28.5% [2][8]. - The company raised net pricing in over half of its communities, with price increases ranging from 1% to 5% across various markets [7][8]. - The Zacks Consensus Estimate for Q2 2024 EPS has increased from $3.18 to $3.20, indicating analyst optimism about the company's growth potential [9]. Group 2: Operating Model - PulteGroup maintains a balanced operating model with a 50/50 split between build-to-order and spec sales, allowing it to cater to diverse buyer preferences and respond effectively to market conditions [4][5]. - The company is leveraging its mortgage rate buydown program, offering fixed-rate mortgages around 5.75%, which has been utilized by approximately 25% of buyers, enhancing affordability and driving demand [6][9]. Group 3: Market Position and Valuation - Despite high borrowing costs affecting the housing market, PulteGroup benefits from low housing inventory and favorable demographic trends, which are expected to drive growth in the homebuilding sector [9]. - The stock has a forward P/E ratio of 8.1X, below the industry average of 9.5X, suggesting an attractive valuation for investors [10]. - PulteGroup's trailing 12-month ROE stands at 25.8%, significantly higher than the industry average of 16.8%, indicating efficient use of shareholders' funds [10]. Group 4: Shareholder Returns - PulteGroup has a history of paying quarterly dividends for nearly four decades, with a recent 5% increase to 20 cents per share, reflecting its commitment to returning cash to shareholders [11]. - The company is expected to generate substantial operating cash flow, projected at another $2 billion in 2024, supported by efforts to reduce construction cycle times [11].

The new market cycle could be the best environment for ‘boring’ stocks to take off. Recently, there has been some interest in the real estate sector, especially after Warren Buffett started buying homebuilding stocks like PulteGroup Inc. NYSE: PHM and D.R. Horton Inc. NYSE: DHI over the last quarter of 2023. This raised the question of whether the industry could see more rallies ahead.While it may be too late to buy the home builders, considering that they have already rallied significantly over the past 12 ...

UKRAINE - 2023/10/25: In this photo illustration, PulteGroup logo is seen on a smartphone and on a ... [+] pc screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesOur theme of Housing Stocks, which includes the stocks of home improvement players, building supply companies, and home builders including DR Horton and Pulte Group has been a mixed performer this year, rising by just about 2% year-to-date. This compares to the S&P 500, which ...

Core Viewpoint - PulteGroup has experienced a stock return of -2.8% over the past month, underperforming the Zacks S&P 500 composite's +3.2% change, and the Zacks Building Products - Home Builders industry, which lost 3.5% during the same period, raising questions about its near-term stock performance [1] Earnings Estimates Revisions - The consensus earnings estimate for PulteGroup for the current quarter is $3.20 per share, reflecting a +6.7% change year-over-year, with no changes in the estimate over the last 30 days [3] - The consensus earnings estimate for the current fiscal year stands at $12.89, indicating a +10% year-over-year change, also unchanged over the last 30 days [3] - For the next fiscal year, the consensus estimate is $13.38, showing a +3.8% change from the previous year, with no revisions in the past month [3] Revenue Growth Forecast - The consensus sales estimate for PulteGroup for the current quarter is $4.48 billion, indicating a +6.9% year-over-year change [5] - The sales estimates for the current and next fiscal years are $17.34 billion and $18.28 billion, reflecting changes of +7.9% and +5.5%, respectively [5] Last Reported Results and Surprise History - PulteGroup reported revenues of $3.95 billion in the last quarter, a +10.5% year-over-year increase, with an EPS of $2.87 compared to $2.35 a year ago [6] - The reported revenues exceeded the Zacks Consensus Estimate of $3.59 billion by +10.09%, and the EPS surprise was +21.61% [6] - The company has consistently beaten consensus EPS estimates in the last four quarters and topped revenue estimates twice during this period [6] Valuation - PulteGroup is rated Zacks Rank 2 (Buy), indicating a favorable outlook based on earnings estimate revisions and other related factors [4] - The Zacks Value Style Score grades PulteGroup as an A, suggesting it is trading at a discount compared to its peers [9]

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to fi ...

Investors looking for stocks in the Building Products - Home Builders sector might want to consider either PulteGroup (PHM) or NVR (NVR) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores high ...

PulteGroup (PHM) closed the most recent trading day at $114.41, moving +0.28% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.77%. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 0.95%. The homebuilder's shares have seen a decrease of 4.18% over the last month, not keeping up with the Construction sector's loss of 4.01% and the S&P 500's gain of 3.71%. The investment community will be paying close attenti ...