March 23, 2025 – Atlanta, GA – PulteGroup, Inc. (NYSE: PHM), a leading homebuilder, is defying the broader housing sector downturn with strong Q4 2024 earnings, signaling resilience in a challenging market. Despite a 29.5% decline from its 52-week high of $149.47, PHM has outperformed industry peers such as Lennar Corporation (LEN) and the iShares U.S. Home Construction ETF (ITB) over the past year.
📊 Q4 Earnings Beat Expectations
On January 30, PulteGroup reported total revenue of $4.9 billion, exceeding Wall Street forecasts. The company posted an adjusted EPS of $3.50, beating analyst expectations. Notably, home sale revenue grew by 13% year-over-year to $4.7 billion, with a gross margin of 27.5%.
Following the report, PHM shares jumped 4.9%, highlighting investor confidence in the company’s ability to navigate market headwinds.
📉 Stock Performance and Sector Comparison
While PulteGroup has delivered better relative performance than its peers, it remains in a downtrend:
- PHM is down 4.7% over the past three months, outperforming the ITB ETF, which declined 7.7% during the same period.
- Year-to-date, PHM has dipped 3.3%, while ITB is down 6.7%.
- Over the past 52 weeks, PHM shares have fallen 7.6%, while ITB suffered a 14.1% decline.
- Rival Lennar Corporation (LEN) has fared worse, down 11.9% YTD and 26.6% over the past year.
🔎 Technical Trends: Below Key Moving Averages
Despite its relative strength, PHM has been trading below its 50-day moving average since late October 2024 and has remained under its 200-day moving average since December 2024, indicating a bearish technical outlook.
💡 Analyst Sentiment: Cautiously Optimistic
PulteGroup currently holds a “Moderate Buy” rating from 16 analysts, with a mean price target of $135.03, suggesting significant upside potential from current levels.
🛠️ PulteGroup’s Competitive Edge
PulteGroup operates through two segments:
- Homebuilding: The company acquires and develops residential land, constructing homes under brands such as Centex, Pulte Homes, Del Webb, DiVosta Homes, American West, and John Wieland Homes and Neighborhoods.
- Financial Services: Includes mortgage financing, title, and insurance services.
The company’s diverse brand portfolio and presence in over 45 U.S. markets position it for long-term growth, even as the housing sector faces challenges from rising interest rates and softening demand.
📈 What’s Next for PHM?
Despite recent weakness, PHM’s strong fundamentals and its ability to outperform industry peers make it an attractive option for long-term investors. With shares currently trading below the mean analyst target, the stock offers potential upside as the housing market stabilizes.
