PulteGroup (PHM) ended the recent trading session at $132.70, demonstrating a +0.84% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.45%. Elsewhere, the Dow lost 0.23%, while the tech-heavy Nasdaq added 0.84%.Shares of the homebuilder witnessed a gain of 7.9% over the previous month, beating the performance of the Construction sector with its gain of 1.61% and the S&P 500's gain of 2.54%.The investment community will be paying close attention to the earnings pe ...

PulteGroup, Inc. (PHM) is gaining significant attention as markets anticipate a potential rate cut by the Federal Reserve in September. So far this year, the company’s shares have rallied 26.6%, demonstrating impressive resilience amid volatility and mixed industry data. This performance surpasses the Zacks Building Products - Home Builders industry’s 20.8% rise as well as the broader Construction sector's 13% increase and the Zacks S&P 500 Composite's 15.4% growth.This Atlanta, GA-based homebuilder has str ...

Shares of PulteGroup (PHM) have been strong performers lately, with the stock up 0.5% over the past month. The stock hit a new 52-week high of $136.47 in the previous session. PulteGroup has gained 29.5% since the start of the year compared to the 19% move for the Zacks Construction sector and the 25.8% return for the Zacks Building Products - Home Builders industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus esti ...

Group 1 - PulteGroup (PHM) has shown a year-to-date performance increase of 30.9%, outperforming the average gain of 19.8% in the Construction sector [2][3] - The Zacks Consensus Estimate for PulteGroup's full-year earnings has risen by 2.1% over the past 90 days, indicating improving analyst sentiment [2] - PulteGroup is part of the Building Products - Home Builders industry, which has an average year-to-date gain of 27.4%, further highlighting its strong performance [3] Group 2 - Sterling Infrastructure (STRL) has achieved a year-to-date return of 34.3%, also outperforming the Construction sector [2] - The consensus EPS estimate for Sterling Infrastructure has increased by 6.7% over the past three months, reflecting positive analyst outlook [3] - Sterling Infrastructure belongs to the Engineering - R and D Services industry, which has seen a year-to-date increase of 32.5% [3]

Affordability issues have largely impacted home buyer’s sentiments all through the year. Their incomes were also stretched due to elevated interest rates, a frustration for the housing market. However, with interest rate cut expectations growing, mortgage rates dropped to their lowest level this year.With mortgage rates sliding, things are hunky-dory for PulteGroup, Inc. (PHM) , KB Home (KBH) and Toll Brothers, Inc. (TOL) making them enticing buys.Mortgage Rates Fall Under 6.5%For the week ending on Aug 22, ...

Core Viewpoint - PulteGroup reported strong second-quarter 2024 earnings, with significant increases in earnings per share (EPS) and revenues, driven by a balanced operating model and strong cash flows [2][4]. Financial Performance - Adjusted EPS for Q2 2024 was $3.58, exceeding the consensus estimate of $3.21 by 11.5% and up 19.3% from $3.00 a year ago [4]. - Total revenues reached $4.6 billion, surpassing the consensus estimate of $4.48 billion by 2.7% and increasing 9.8% from $4.19 billion in the previous year [4]. - Homebuilding segment revenues rose 9.6% year over year to $4.49 billion, with home sale revenues also increasing by 9.6% to $4.45 billion [5]. - Financial Services segment revenues increased 21.1% year over year to $111.7 million, with pretax income rising to $63 million from $46 million a year ago [6]. Operational Highlights - The number of homes closed increased by 8% to 8,097 units, while the average selling price of homes delivered was $549,000, up 2% year over year [5]. - Home sales gross margin improved by 30 basis points to 29.9%, supported by strong homebuyer demand [6]. - New home orders declined 3.7% year over year to 7,649 units, but the value of new orders rose 2% to $4.4 billion [5]. Cash Flow and Capital Structure - Cash, cash equivalents, and restricted cash at the end of Q2 were $1.45 billion, down from $1.85 billion at the end of 2023 [7]. - Net cash provided by operating activities was $657.3 million in the first half of 2024, compared to $1.45 billion in the prior-year period [7]. - The company repurchased 2.8 million common shares for $314 million at an average price of $113.79 per share during the reported quarter [7]. Market Dynamics - Long-term market dynamics favor PulteGroup due to a structural shortage of homes from years of underbuilding, despite short-term impacts from interest rate movements [3]. - The company achieved a 27.1% return on equity over the past 12 months, reflecting effective management of sales price and pace [3]. Industry Comparison - PulteGroup operates within the Zacks Building Products - Home Builders industry, where competitor D.R. Horton reported revenues of $9.97 billion, a year-over-year increase of 2.5% [11]. - D.R. Horton has a Zacks Rank 3 (Hold), while PulteGroup holds a Zacks Rank 2 (Buy), indicating a more favorable outlook for PulteGroup [10][11].

The Federal Reserve has kept interest rates at record-high levels for quite some time, citing additional progress in price pressures ebbing toward the central bank’s target of 2%. However, July’s doomed jobs data raised recession fearmongering and compelled market participants to believe that the Fed has been a bit late in slashing interest rates.Nevertheless, cooling consumer and wholesale prices last month strengthened hopes that the Fed would initiate an interest rate cut in September, even if it won’t b ...

Core Insights - The housing market is experiencing a positive shift due to falling mortgage rates, which have dropped to their lowest level in over a year, enhancing the purchasing power of potential homebuyers [1][2][5] Mortgage Rate Trends - The average rate for a 30-year fixed mortgage decreased to 6.47% for the week ending August 8, down from 6.73% the previous week, marking the lowest level since May 2023 [2] - The 15-year fixed mortgage rate also fell to 5.63%, down from 5.99% the prior week [2] Economic Factors Influencing Rates - Mortgage rates declined following a disappointing jobs report that raised recession concerns, leading to expectations of a Federal Reserve interest rate cut in September [3][4] - The personal consumption expenditures index increased by 2.5% year over year in June, a slowdown compared to previous months, prompting discussions of potential interest rate cuts by the Fed [3] Housing Market Dynamics - The drop in mortgage rates is expected to shift the housing market from a seller's to a buyer's market, as affordability issues faced by homebuyers are alleviated [5] - Increased housing market turnover is anticipated as prospective buyers, particularly millennials, are ready to make purchases [5] Company Performance and Outlook - PulteGroup, Inc. (PHM) has a Zacks Rank of 2 and a VGM Score of B, with a projected earnings growth rate of 13.3% for the current year and a return on equity (ROE) of 25.7% [7] - KB Home (KBH) also holds a Zacks Rank of 2 and a VGM Score of B, with an expected earnings growth rate of 19.2% for the current year [8] - M/I Homes, Inc. (MHO) has a Zacks Rank of 1 and a VGM Score of B, with a projected earnings growth rate of 20.8% for the current year and a net profit margin of 12.7% [9] Stock Performance - Year-to-date stock performance shows PulteGroup gaining 18.3%, KB Home increasing by 27.6%, and M/I Homes rising by 3.4% [9]

Atlanta, GA-based homebuilder PulteGroup, Inc. (PHM) recently reported robust second-quarter 2024 results, showcasing the resilience of housing demand and the company's sustainable improvements in capital efficiency despite a challenging interest rate environment.The company exceeded earnings and revenue expectations, driven by a balanced operating model. This model facilitated an increase in average sales price (ASP), closings, and gross margin expansion, collectively boosting earnings by 19%.Investors rea ...

miflippo It may come as a surprise that the largest homebuilders have crushed the broader market over the past decade. While the S&P 500 achieved total returns of 235% over the last ten years, 101% at 5Y mark, and 20% over the TTM, the iShares U.S. Home Construction ETF (ITB) has risen by an impressive 451%, 213%, and 32% respectively. This outstanding performance is all the more noteworthy given the challenges posted by a volatile interest rate environment, rising construction costs, and ever-changing ...