Pultegroup stock hasn't failed in November when looking back 10 years
There's been plenty of speculation regarding homebuilding stocks as construction spending and mortgage rates jump. The grim outlook for existing homes has pushed buyers towards new constructions, and Pultegroup Inc (NYSE:PHM) is reaping the rewards, up 84.8% over the last 12 months. Though shares were last seen 0.4% lower at $82.04, there's reason to believe that PHM still has a solid path higher.
This is due to the fact that Pultegroup stock is halfway through a historically bullish month. per data from Senior Quantitative Analyst Rocky White, the equity is one of the best-performing stocks on the S&P 500 Index (SPX) when looking at the last 10 years. Securing second place on White's list, PHM averaged a November return of 7.2% in the last decade, finishing the month with a positive 100% of the time. The equity is already outperforming its historical gains, up 11.4% in November, with more than two weeks left in the month.
On the charts, the stock just bounced from a late-October post-earnings dip. Now trading in a range between the $80 and $84 area, Pultegroup stock has neared its mid-August record highs just above the $86 level.
An unwinding of short-term options traders' pessimism could provide some tailwinds. This is per PHM's Schaeffer's put/call open interest ratio (SOIR) of 1.18 that ranks in the 74th percentile of readings from the past 12 months, suggesting a bearish bias amongst these traders.