#2 - PulteGroup (NYSE:PHM)
Next up is PulteGroup Inc. (NYSE: PHM). The homebuilder’s portfolio is diversified in many of the fastest-growing U.S. markets with a healthy concentration in Florida which continues to see population growth.
That growth continues to show up in the company’s earnings. In the second quarter of 2023, the homebuilder posted earnings of $3.21 which was higher than the $2.73 it recorded in the same quarter of 2022. The top line was equally strong with the company posting $4.1 billion, an 8% YOY increase. The company also reported a backlog of 13,558 homes valued at $8.2 billion.
Although Pulte Group is only expected to show modest earnings growth in the next 12 months, analysts are forecasting an 11.2% upside in the price target for PHM stock, which currently trades at a forward price-to-earnings (P/E) ratio of just 6x earnings.
The company also pays a dividend that, while having a modest 0.83% yield has been increasing for five consecutive years. The company is also adding shareholder value via a series of share repurchases.
About PulteGroup
PulteGroup, Inc, through its subsidiaries, primarily engages in the homebuilding business in the United States. It acquires and develops land primarily for residential purposes; and constructs housing on such land. The company also offers various home designs, including single-family detached, townhomes, condominiums, and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes, John Wieland Homes and Neighborhoods, and American West brand names.
Read More - Current Price
- $120.00
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 10 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $111.87 (6.8% Downside)
