How Is PulteGroup’s Stock Performance Compared to Other Residential Construction Stocks?

Valued at a market cap of $21.3 billion, PulteGroup, Inc. (PHM) engages in the homebuilding business. Based in Atlanta, Georgia, the company acquires and develops land primarily for residential purposes and constructs housing on such land. It has two segments: Homebuilding and Financial Services.

Companies valued at $10 billion or more are generally labeled as “large-cap” stocks, and PulteGroup fits this criterion perfectly. Through its brand portfolio that includes Centex, Pulte Homes, Del Webb, DiVosta Homes, American West, and John Wieland Homes and Neighborhoods, the company operates in more than 45 markets throughout the country.

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However, the homebuilding company declined 29.5% from its 52-week high of $149.47. Over the last three months, PHM dropped 4.7%, outpacing iShares U.S. Home Construction ETF’s (ITB) 7.7% decline.

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In the longer term, PHM is down 3.3% on a YTD basis, whereas ITB dipped 6.7%. However, shares of PulteGroup have decreased 7.6% over the past 52 weeks, surpassing ITB’s 14.1% loss over the same time frame.

PHM has been trading below its 50-day moving average since late October last year. Also, the stock has fallen below its 200-day moving average since December last year.

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PulteGroup exceeded Wall Street expectations with its Q4 2024 results, and its shares rose up 4.9% on Jan. 30. The company posted total revenue of $4.9 billion, and its adjusted EPS came in at $3.50. PHM’s home sale revenue grew 13% year-over-year to $4.7 million, with a sale gross margin of 27.5%.

Additionally, in comparison, rival Lennar Corporation (LEN) has performed weaker than PHM. LEN is down 11.9% on a YTD basis and 26.6% over the past 52 weeks.

Despite PHM’s outperformance relative to its industry peers over the past year, analysts are cautiously optimistic about its prospects. PHM has a consensus rating of “Moderate Buy” from the 16 analysts covering the stock. As of writing, PulteGroup is trading below the mean price target of $135.03.