PulteGroup Inc. (PHM) is scheduled to report third-quarter 2024 results on Oct. 22, before the opening bell.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.In the second quarter of 2024, earnings and revenues handily beat the Zacks Consensus Estimate by 11.5% and 2.7%, respectively. PulteGroup’s balanced operating model resulted in increases in closings, average sales price, and gross margin, which collectively led to a 19.3% increase in earnings per share (EPS).Strong cash flows pr ...

Core Insights - Analysts forecast PulteGroup (PHM) will report quarterly earnings of $3.10 per share, reflecting a year-over-year increase of 6.9% and revenues of $4.26 billion, an increase of 6.4% compared to the previous year [1] Financial Projections - Consensus estimates for 'Homebuilding- Home sale revenues' are projected to reach $4.14 billion, indicating a year-over-year change of +6.6% [2] - 'Revenues- Financial Services' are expected to be $86.49 million, showing a +12.7% change from the prior-year quarter [2] - 'Revenues- Homebuilding' is anticipated to reach $4.17 billion, reflecting a +6.2% change from the previous year [2] Additional Metrics - 'Homebuilding- Land sale revenues' are forecasted at $34.88 million, indicating a year-over-year decline of -12.6% [3] - The 'Average Selling Price - Total' is expected to be $546.01, slightly down from $549 in the previous year [3] - 'Net New Orders in Units - Total' is projected to reach 7,077, a slight increase from 7,065 year-over-year [3] - 'Active Communities' are expected to total 954, up from 923 in the same quarter last year [3] - 'Closings (units) - Total' are anticipated to be 7,630, compared to 7,076 in the same quarter of the previous year [3] - The 'Unit Backlog - Total' is estimated at 12,429, down from 13,547 year-over-year [3] Backlog and Income Estimates - The estimated 'Backlog Value - Total' is $7.73 billion, down from $8.13 billion in the same quarter last year [4] - 'Net New Orders (Value) - Total' is projected at $3.93 billion, compared to $3.82 billion in the same quarter of the previous year [4] - 'Income / (loss) before income taxes- Homebuilding' is expected to be $821.54 million, slightly up from $818.37 million in the same quarter last year [4] Stock Performance - PulteGroup shares have returned +4.1% over the past month, outperforming the Zacks S&P 500 composite's +3.8% change [5]

In the latest market close, PulteGroup (PHM) reached $144.62, with a +1.46% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 0.76%. Elsewhere, the Dow lost 0.75%, while the tech-heavy Nasdaq lost 1.01%.Heading into today, shares of the homebuilder had gained 1.77% over the past month, lagging the Construction sector's gain of 2.69% and the S&P 500's gain of 4.31% in that time.The upcoming earnings release of PulteGroup will be of great interest to investors. The company' ...

Core Viewpoint - PulteGroup, Inc. (PHM) is currently trading at a discount compared to the Zacks Building Products - Home Builders industry, with a forward Price/Earnings ratio of 10.31x, below the industry average of 11.06x and the broader Construction sector's 18.06x, indicating a strong value proposition for investors [1] Stock Performance - Over the past three months, PHM stock has surged 32.5%, outperforming the industry's growth of 29.9% and the Zacks S&P 500 Composite's gain of 2.5% [1] - PHM is trading at a 4.4% discount to its 52-week high of $145.84, reached on September 19, 2024, following a 50-basis point interest rate cut by the Federal Reserve [1] Market Outlook - Jerome Powell's indication of two additional rate cuts in 2024 could further boost the homebuilding market, enhancing the outlook for PulteGroup and its peers [2] - The stock is currently above both its 50-day and 200-day moving averages, reflecting strong investor confidence and a favorable market outlook [3] Operational Strategy - PulteGroup employs a balanced mix of speculative and build-to-order homes, with approximately 17,250 homes under construction, 40% of which are speculative, allowing responsiveness to market demands [5] - The management prioritizes Return on Equity (ROE) over high margins, achieving an ROE of 27.1% by Q2 2024, indicating efficient capital use and strong profitability [6] Land Management - PulteGroup's strategic land management involves controlling 53% of its lots through land options, with plans to increase this to 70%, optimizing returns and reducing risks [7] - The company has transacted 13,000 lots, freeing up $1.5 billion in capital, which enhances liquidity and flexibility in land acquisitions [7] Challenges - Managing inventory in overbuilt regions like Southwest Florida and parts of Texas is crucial to prevent high inventory levels that could pressure profit margins [8] - A 4% year-over-year drop in net new orders for Q2 highlights the housing market's sensitivity to economic factors, including interest rates and consumer sentiment [9] Consensus Estimates - Positive sentiment has led to upward revisions in the Zacks Consensus Estimate for earnings per share, with expected growth rates of 14% and 1.7% for the current and next year, respectively [10] Price Target and Recommendations - The average price target for PHM is $145.33 per share, suggesting a potential upside of 4.2% from the recent closing price of $139.44 [11] - PulteGroup is recommended for purchase due to its strategic initiatives and favorable market conditions, including low housing inventory and anticipated interest rate cuts [12] Cash Flow and Efficiency - As a Zacks Rank 2 (Buy) company, PulteGroup aims to reduce construction cycle times from 123 days to 100 days or less, targeting an additional $2 billion in operating cash flow in 2024 [13]

For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Is PulteGroup (PHM) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.PulteGroup is a member of the Construction sector. This group includes 91 individual stocks and currently holds a Zacks Sector Rank of #3. The Zacks Sector Rank considers 16 differe ...

In the latest trading session, PulteGroup (PHM) closed at $143.54, marking a +1.18% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.28% for the day. Meanwhile, the Dow experienced a rise of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.15%.Shares of the homebuilder have appreciated by 4.98% over the course of the past month, underperforming the Construction sector's gain of 7.51% and outperforming the S&P 500's gain of 2%.Analysts and investors alik ...

Homebuilders have not had a great 2024 so far, as the industry as a whole has been lagging behind the S&P year-to-date. This is primarily due to relatively hawkish Fed policy on continued high inflation, resulting in higher mortgageI am a sophomore at USC (class of 2027) studying economics and accounting and aiming for an equity research-related career path, and Seeking Alpha serves as the place for me to put up all of my pitches. I conduct generalist equity research, but at the moment I am focusing on US b ...

The U.S. housing market is trying to bounce back after a difficult 2023 and the first half of this year. Homebuilder confidence rebounded in September after hitting a low in the past four months. Also, housing starts and building permits rebounded, bringing a glimmer of hope to the housing sector.The Federal Reserve’s rate cut is going to help the sector in the near term as mortgage rates are likely to decline further. It would thus be prudent to invest in homebuilding stocks. We have narrowed our search to ...

For Immediate ReleasesChicago, IL – September 20 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Century Communities, Inc. (CCS) , M/I Homes, Inc. (MHO) , Meritage Homes Corp. (MTH) , PulteGroup, Inc. (PHM) and Taylor Morrison Home Corp. (TMHC) .Here are highlights from Friday’s Analyst Blog: 5 Housing Stocks to ...

For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. PulteGroup (PHM) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.PulteGroup is one of 91 individual stocks in the Construction sector. ...