Is PulteGroup Stock Underperforming the S&P 500?

PulteGroup, Inc. (PHM) is one of America’s largest homebuilders, headquartered in Atlanta, Georgia. It acquires and develops land for residential use and constructs and sells single-family detached homes, townhomes, condominiums, and duplexes. Operating in U.S. markets, the company serves diverse homebuyers through brands including Centex, Pulte Homes, Del Webb, and DiVosta Homes. The company has a market capitalization of $22.76 billion, which makes it a “large-cap” stock. 

PulteGroup’s shares reached a 52-week low of $108.49 on May 19, but are up 10.1% from that level. Over the past three months, the stock has dropped 2.7%, as investors weigh persistent housing-market headwinds. Meanwhile, the broader S&P 500 Index ($SPX) is up marginally over the past three months. Therefore, PHM has clearly underperformed over this period.

PulteGroup’s stock is down over the past year as investors price in a tougher housing backdrop and persistent affordability pressures. Over the past 52 weeks, the stock has declined 11.4%, while the S&P 500 index is up 14.7%. PulteGroup’s stock is up 1.9% year-to-date (YTD), while the broader index is up 10.8%. The company’s shares have traded below its 200-day moving average since early September and lower than its 50-day moving average since late August. 

In the second quarter, PulteGroup experienced volatile interest rates and strained profitability, which led to a decline in its financials compared to the prior-year quarter. The company’s home-sale revenue fell 11% year-over-year (YOY) to $3.80 billion, driven by an 8% drop in closings to 6,997 homes and a 3% decline in average selling price to $544,000. 

Wall Street analysts have mixed views on PulteGroup’s bottom-line trajectory. For the current quarter, its profit is expected to decline by 11.2% YOY to $2.63 per share. For fiscal 2026, the company’s bottom line is projected to decrease by 12% annually to $10.07 per share, followed by a 9.8% increase to $11.06 per share in fiscal 2027. 

We compare PulteGroup’s performance with that of another residential construction stock, D.R. Horton, Inc. (DHI), which is down 18.5% over the past 52 weeks, 2.7% YTD, and 9.6% over the past three months. Therefore, PulteGroup has clearly outperformed over these periods.

Wall Street analysts are moderately bullish on PulteGroup’s stock. The 17 analysts covering it have a consensus rating of “Moderate Buy.” The mean price target of $141.75 implies an 18.6% upside from current levels. The Street-high price target of $166 indicates a 38.9% upside.

On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.