One of the leading homebuilders in the U.S,
) reached a 52-week high of $20.54 on Jan 17, 2013.
PulteGroup, on the back of its significant land positions, broad
geographic and product diversity, and better capital position, is
gaining momentum from the fast improving housing fundamentals.
With the housing recovery, there has been a drop in inventory
levels and an increase in home prices.
PulteGroup has been witnessing increasing earnings estimates,
before the release of its fourth quarter 2012 earnings. The
upward movements of the estimates reflect rising expectations for
significantly higher year-over-year earnings growth rates in
fiscal 2012 and 2013. The long-term expected earnings growth rate
for this stock is 10.00%.
Pulte has witnessed solid year-over-year growth in new home
orders, average selling prices and home closings for the past two
quarters. Margins have also been healthy, driven by pricing
benefits, operating efficiency improvement initiatives and a
better mix of sales, particularly of move-up homes.
Pulte has delivered positive earnings surprises in three of the
past four quarters with an impressive average earnings surprise
of 77.5% in the trailing four quarters.
We are encouraged by Pulte's solid third quarter results and
bullish growth projection for the upcoming quarters, backed by
gradually recovering homebuilding market.
Other Stocks to Consider
With the housing market recovering steadily, many other stocks in
the homebuilding sector are currently performing well. These
Meritage Homes Corporation
MDC Holdings Inc.
) both with Zacks Rank #1(Strong Buy) and
The Ryland Group, Inc.
) both having a Zacks Rank #2 (Buy).
MDC HLDGS (MDC): Free Stock Analysis Report
MERITAGE HOMES (MTH): Free Stock Analysis
NVR INC (NVR): Free Stock Analysis Report
PULTE GROUP ONC (PHM): Free Stock Analysis
RYLAND GRP INC (RYL): Free Stock Analysis
To read this article on Zacks.com click here.