PulteGroup Hits 52-Week High - Analyst Blog

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One of the leading homebuilders in the U.S, PulteGroup Inc. ( PHM ) 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 include Meritage Homes Corporation ( MTH ) and MDC Holdings Inc. ( MDC ) both with Zacks Rank #1(Strong Buy) and The Ryland Group, Inc. ( RYL ) and NVR, Inc ( NVR ) both having a Zacks Rank #2 (Buy).



MDC HLDGS (MDC): Free Stock Analysis Report

MERITAGE HOMES (MTH): Free Stock Analysis Report

NVR INC (NVR): Free Stock Analysis Report

PULTE GROUP ONC (PHM): Free Stock Analysis Report

RYLAND GRP INC (RYL): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: MDC , MTH , NVR , PHM , RYL

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