Q2 STOCKS TO BUY

PulteGroup Stock Fundamentals Are a Rock-Solid Foundation

PHM’s valuation and fundamentals suggest the stock is a deal

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PulteGroup, Inc. (NYSE: PHM) is the third-largest home construction company in the U.S. The stock is up 28% year-to-date and 68% year-over-year, but has pulled back modestly from its May 10 record high of $63.90. The good news is PHM's 100-day moving average has stepped up to support this drop. So going forward, is this an intriguing entry point for the homebuilder stock?

One date to watch this month is the company's corporate report, set for before the open on July 27. The last four years, PHM has scored a positive post-earnings reaction in the last eight reports, including  a 4.3% pop back in April. PulteGroup stock also has a forward dividend of $0.56 and a dividend yield of 1.03%.

From a fundamental point of view, PulteGroup stock has a very intriguing valuation despite the stock’s recent growth. PHM currently trades at a low price-earnings ratio of 10.02, and PHM also has an incredible forward price-earnings ratio of 7.55.

Additionally, PulteGroup has grown its revenues consistently over the past few years. Since fiscal 2017, PHM has increased revenues by nearly 34% and its trailing 12-month revenues have grown by 4% since fiscal 2020. On the bottom-line, PHM  has also increased its trailing 12-month net income by 7% compared to fiscal 2020 and by 48% compared to fiscal 2019. Overall, PulteGroup stock looks to be best suited for long-term investors searching for minimal risk investments.

There isn't much in contrarian optimism to be unwound though. Most of the analysts in coverage rate PHM a "buy" or better, while a slim 3.5% of the stock's total available float is sold short. 

 
 

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