Ticker (Exchange) – PHM (NYSE)
ISIN - US7458671010
Current price – $125.2
Target price – $141.0
Growth potential – 12.6%🔥
Dividend yield – 0.6%💵
Investment horizon – 1 year
PulteGroup is an American construction company and the third-largest homebuilder in the United States. The company has shown consistent financial performance over time, which is also reflected in its stock price. Over the past 12 months, the stock has risen nearly 60%. However, the growth potential is not yet exhausted. The anticipated reduction in the Federal Reserve's key interest rate is expected to lower mortgage rates, providing another boost to the stock's price. The fair value of PulteGroup's shares is $141, with an upside potential of 12.6%. The dividend yield is 0.6%.
Investment thesis
🔼 Strong Financial Performance. PulteGroup reported outstanding results for Q2 2024. The company's revenue increased by 9.8% y/y to $4.6 bln. Earnings per share (EPS) jumped 19.3% y/y to $3.83, driven by an increase in closings, average sales price and gross margin. Although the number of new orders in Q2 2024 decreased slightly compared to Q2 2023, their dollar value grew by 2%. PulteGroup's total backlog reached 12,982 homes valued at $8.1 billion. The outlook for the construction sector remains optimistic amid a structural shortage of homes caused by years underbuilding.
🔼 Attractive Valuation. The homebuilder is valued quite cheaply—at 9.5 times expected annual earnings, which is below the average for the sector and the market as a whole.
🔼 Dividends and Buyback. The company consistently returns profits to shareholders through dividends and share buybacks, indicating a robust business model. In Q2 2024, PulteGroup repurchased $314 million worth of its own shares. The dividend yield on the stock is 0.6%.
To open a brokerage account with Unibank Invest, please fill out the application form or contact us at +374 43 004 382.
Disclaimer
The information provided above is not an investment recommendation and does not guarantee or promise profitability. Before investing, you should assess the potential risks and rewards and determine your willingness and ability to accept such risks.
Unibank OJSC is regulated by the Central Bank of Armenia.
ISIN - US7458671010
Current price – $125.2
Target price – $141.0
Growth potential – 12.6%🔥
Dividend yield – 0.6%💵
Investment horizon – 1 year
PulteGroup is an American construction company and the third-largest homebuilder in the United States. The company has shown consistent financial performance over time, which is also reflected in its stock price. Over the past 12 months, the stock has risen nearly 60%. However, the growth potential is not yet exhausted. The anticipated reduction in the Federal Reserve's key interest rate is expected to lower mortgage rates, providing another boost to the stock's price. The fair value of PulteGroup's shares is $141, with an upside potential of 12.6%. The dividend yield is 0.6%.
Investment thesis
🔼 Strong Financial Performance. PulteGroup reported outstanding results for Q2 2024. The company's revenue increased by 9.8% y/y to $4.6 bln. Earnings per share (EPS) jumped 19.3% y/y to $3.83, driven by an increase in closings, average sales price and gross margin. Although the number of new orders in Q2 2024 decreased slightly compared to Q2 2023, their dollar value grew by 2%. PulteGroup's total backlog reached 12,982 homes valued at $8.1 billion. The outlook for the construction sector remains optimistic amid a structural shortage of homes caused by years underbuilding.
🔼 Attractive Valuation. The homebuilder is valued quite cheaply—at 9.5 times expected annual earnings, which is below the average for the sector and the market as a whole.
🔼 Dividends and Buyback. The company consistently returns profits to shareholders through dividends and share buybacks, indicating a robust business model. In Q2 2024, PulteGroup repurchased $314 million worth of its own shares. The dividend yield on the stock is 0.6%.
To open a brokerage account with Unibank Invest, please fill out the application form or contact us at +374 43 004 382.
Disclaimer
The information provided above is not an investment recommendation and does not guarantee or promise profitability. Before investing, you should assess the potential risks and rewards and determine your willingness and ability to accept such risks.
Unibank OJSC is regulated by the Central Bank of Armenia.
