Core Viewpoint - The S&P 500 is reaching new heights, prompting a recommendation to shift investment portfolios from expensive large-cap stocks to undervalued small- and mid-cap stocks, which are perceived as less susceptible to valuation pressures [1]. Group 1: Market Analysis - The current market environment suggests that large-cap stocks may be overvalued, making them a riskier investment choice [1]. - Small- and mid-cap stocks are highlighted as potentially more attractive due to their lower valuations and growth opportunities [1]. Group 2: Analyst Background - The analyst, Gary Alexander, has extensive experience in technology sectors, both on Wall Street and in Silicon Valley, providing insights into current industry trends [1]. - Alexander has been a contributor to Seeking Alpha since 2017 and has been featured in various publications, indicating a strong presence in the investment community [1].

Company Overview - PulteGroup, Inc. is one of the largest homebuilders in the U.S., with a market cap of $26.6 billion, operating under brands like Pulte Homes and Centex [1][2] - The company integrates land acquisition, home design, construction, and mortgage financing, focusing on affordability and quality [2] Market Performance - PulteGroup's shares are currently trading 9.8% below their 52-week high of $149.47, reached on October 21, 2024 [3] - Over the past three months, shares have rallied 32.7%, outperforming the Nasdaq Composite's 15.2% return [3] - Year-to-date, shares are up 23.8%, compared to NASX's 15.7% rise, but have fallen 3.4% over the past 52 weeks, underperforming NASX's 26.4% increase [4] Earnings Report - On July 22, shares soared 11.5% following better-than-expected Q2 earnings [5] - Revenue for the quarter was $4.4 billion, a decline of 4.3% year-over-year, but slightly above consensus estimates [5] - Net income was $3.03 per share, down 20.9% year-over-year, yet exceeding analyst expectations of $2.92 [5] - A favorable consumer response to a late-June pullback in interest rates contributed to the company's positive results [5]