
PulteGroup (PHM) Stock Forecast & Price Target
PulteGroup (PHM) Analyst Ratings
Bulls say
PulteGroup Inc. reported a 12% year-over-year increase in unit closings and total sales, reaching 7.9k and $4.5 billion, respectively, in F3Q24, indicating strong operational performance that exceeded both company guidance and prior forecasts. This growth was supported by improved labor availability and favorable conditions for well-capitalized companies in the land market due to banks' reduced lending for land and development. Additionally, continued robust order growth in key regions, coupled with significant share repurchases totaling $880 million year-to-date, enhances PulteGroup's financial stability and prospects for future demand in the housing market.
Bears say
PulteGroup's financial performance reveals several challenges contributing to a negative outlook, notably the flat pricing in 2Q24 compared to the previous year and a small decline in incentives, indicating potential pricing pressure in the housing market. The company's gross margin for F3Q24 of 28.8% reflects a year-over-year decrease of 70 basis points and falls short of management's expectations, highlighting operational inefficiencies. Additionally, a slight decrease in home orders year-over-year, coupled with ongoing demand headwinds due to tighter mortgage underwriting standards and macroeconomic factors, raises concerns about future sales growth and market demand.
This aggregate rating is based on analysts' research of PulteGroup and is not a guaranteed prediction by Public.com or investment advice.
PulteGroup (PHM) Analyst Forecast & Price Prediction
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