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On October 22, 2026, PulteGroup Inc PHM shares experienced a notable increase of 5.8%, bringing the current price to $119.48. This movement comes in a context where the stock has ranged from a 52-week low of $107.16 to a high of $144.50.
GF Value™ verdict: Current price is $119.48, which is 0.7% below the GF Value™ estimate of $120.33, indicating slight undervaluation.GF Score™ is 94/100, suggesting strong overall performance across various metrics.Insider activity shows that insiders sold $26.4 million worth of shares over the past year, with no buying reported.Is PHM Overvalued or Undervalued?According to the GF Value™, PulteGroup Inc is currently assessed as fairly valued, with a slight margin of safety as the current price is 0.7% below the intrinsic value estimate of $120.33. GF Value™ represents GuruFocus' proprietary estimate of a stock's intrinsic value based on historical trading multiples, company growth, and future performance expectations. In this case, the proximity of the current price to the GF Value™ suggests that while there is a modest opportunity for upside, it is important for potential investors to consider the risks associated with this narrow margin.
Given that the stock is trading close to its intrinsic value, this indicates that the market has already priced in much of the company's potential growth. Thus, while the slight undervaluation presents a potential opportunity, investors should remain cautious and consider market conditions and company performance before making decisions.
How Does PHM's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)12.2x7.9xForward P/E11.0xN/ACurrently, PulteGroup's P/E (TTM) stands at 12.2x, which is 54% higher than its 5-year median P/E of 7.9x. This indicates that the stock is trading above its historical valuation levels. The higher P/E ratio suggests that investors may be willing to pay more for each dollar of earnings compared to previous years, which aligns with the GF Value™ assessment that indicates the stock is fairly valued but with some caution advised due to its elevated P/E compared to historical norms.
What Does PHM's GF Score™ Tell Us?The GF Score™ measures a company's overall performance based on several key factors including financial strength, profitability, growth, valuation, and momentum. PulteGroup's GF Score™ of 94/100 indicates strong performance, with its highest sub-rank in profitability, which is rated at 10/10, showcasing excellent profit margins and returns. However, its Piotroski F-Score sits at 4, indicating some concerns over financial health.
MetricRatingGF Score™94/100Financial Strength9/10Profitability10/10Growth8/10Valuation9/10Momentum7/10The overall scores suggest that while PulteGroup shows strong profitability and financial strength, there are areas that may warrant further scrutiny, particularly in terms of growth and the Piotroski F-Score, which reflects on the company's operational efficiency and financial stability.
What Are Gurus and Insiders Doing with PHM?Currently, 11 gurus hold shares of PulteGroup, with 5 adding to their positions and 7 trimming their holdings in recent quarters. This indicates a mixed sentiment among institutional investors. When considering insider activity, it is notable that insiders have sold $26.4 million worth of stock over the past year without any reported buying. This trend of selling by insiders could suggest a lack of confidence in the stock's near-term prospects or a need for liquidity, which may raise caution among potential investors.
The pattern of guru activity suggests that while there is interest in PulteGroup, the recent trimming of positions by some gurus combined with significant insider selling might warrant a closer examination of the company's outlook and market conditions before making any investment decisions.
What This Means for InvestorsBased on the current valuation metrics, PulteGroup Inc appears to be fairly valued according to the GF Value™ assessment, with a slight margin of safety. However, the elevated P/E ratio compared to historical levels and the significant insider selling raises potential concerns that investors should consider. As always, thorough research and consideration of market conditions are essential for informed decision-making. For more details, you can visit the PulteGroup Inc PHM stock page for a comprehensive analysis.
Frequently Asked QuestionsWhat is PHM's GF Score™?
PHM has a GF Score™ of 94/100, indicating strong overall performance across various financial metrics.
Is PHM overvalued or undervalued?
PHM is currently fairly valued according to GF Value™, which suggests it is slightly undervalued at 0.7% below the intrinsic value estimate.
What is PHM's P/E ratio?
The P/E ratio for PHM is 12.2x, which is significantly above its 5-year median P/E of 7.9x, indicating that the stock is trading at a premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
Home Sale Revenue (Q3): $3.9 billion, down 9% YoY from $4.2 billion.Home Sale Revenue (9M): $11 billion.Net Income (Q3): $476 million, or $2.53 per diluted shar
Lennar’s Earnings Miss May Be Sending a Bigger Warning About U.S. HousingPulteGroup NYSE: PHM reported third-quarter 2026 net income of $476 million, or $2.53 per share, as higher mortgage rates and weaker consumer confidence reduced buyer traffic and home closings. The homebuilder said it maintained relatively stable conversion rates among prospective buyers who visited its communities, but fewer consumers began the home-search process during the quarter.
Third-quarter home sale revenue fell 9% from a year earlier to $3.9 billion, driven by a 9% decline in closings to 6,876 homes. Net new orders totaled 6,208 homes, down 6% year over year, as a 13% decline in absorption pace more than offset a 7% increase in average community count.
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Homebuilders Are Down for the Year, Is Wall Street in Denial?President and CEO Ryan Marshall said the business experienced a notable slowdown in demand as interest rates increased through the quarter, particularly in September. Traffic to PulteGroup communities declined 14% from the prior year and 11% sequentially from the second quarter.
“What changed in the quarter, and most notably in September, is that the big move higher in interest rates, along with inflation, global tensions, and waning confidence, reached the point where more consumers simply put their search on pause,” Marshall said.
First-Time Buyers See Greatest Impact
These 3 GARP Stocks Show Why Growth and Value Do Not Have to ClashPulteGroup said first-time buyers were the most affected by higher rates, as that group generally requires mortgage financing. Net new orders from first-time buyers declined 9% year over year, while move-up buyer orders fell 14%. Active-adult orders increased 11%, supported by growth in the company’s community count serving that customer base.
The company’s third-quarter cancellation rate was 10% of beginning backlog, improving from 12% in the prior-year period and declining 50 basis points from the second quarter. Chief Financial Officer Jim Ossowski said the stable cancellation level indicates that customers already under contract remain committed to closing.
PulteGroup ended the quarter with backlog of 10,298 homes valued at $6.4 billion, compared with 9,888 homes valued at $6.2 billion a year earlier. Its absorption pace was 1.9 homes per month, down from 2.2 homes per month in the third quarter of 2025.
Marshall said conditions remained stronger in Florida and selected Midwest markets, helping offset softer demand in the Southeast and ongoing weakness in Western markets. He also cited Texas as a more difficult environment, with increased available inventory across the state’s major markets.
Margins Hold Despite Higher Incentives and Impairments
The company reported a home sale gross margin of 24.8%, down 140 basis points from a year earlier and 20 basis points from the prior quarter. The result included incentives equal to 10.4% of home sales revenue, compared with 8.9% in the prior-year quarter, as well as $26 million in land impairment charges.
Construction costs helped moderate margin pressure. PulteGroup’s build costs were $75 per square foot, down 5% from a year earlier and unchanged from the second quarter. Ossowski said the company expects build costs to decline by low single digits year over year in the fourth quarter.
For the fourth quarter, PulteGroup expects gross margins of 24.0% to 24.5% as it factors in the expected mix of homes closing and incentives associated with selling spec homes. The company maintained its full-year gross-margin forecast of 24.5% to 25.0%.
Marshall said the company is emphasizing returns rather than pursuing sales volumes through deeper price cuts. “Sometimes lowering price doesn’t generate incremental sales,” he said, adding that additional discounts can reduce profitability across all home sales without creating sufficient incremental demand.
Updated Closing Outlook and Inventory Controls
PulteGroup now expects to close between 7,000 and 7,500 homes in the fourth quarter and between 27,000 and 27,500 homes for full-year 2026. It maintained guidance for average selling prices of $550,000 to $560,000 in the fourth quarter and for the full year.
At quarter-end, the company had 14,599 homes under construction, including 6,627 spec homes. Total spec inventory was down 10% year over year, while finished spec homes declined 16% to 1,696, or an average of 1.6 per community.
Ossowski said the company started slightly more than 6,500 homes during the third quarter, compared with sales of about 6,200 homes, reflecting how quickly demand weakened in September after permits and production plans had already been set.
“We continue to tightly control our starts pace to align production with changing demand dynamics,” Ossowski said.
Full-year SG&A expense is now expected to be 10.3% to 10.5% of home sale revenues, reflecting lower expected closings and less operating leverage as communities take longer to close out.
Capital Deployment and Balance Sheet
During the third quarter, PulteGroup invested $1.3 billion in land acquisition and development, bringing year-to-date spending to $4 billion. The company expects to invest approximately $5.3 billion in land during 2026, though Marshall said it is prepared to reduce land spending in 2027 if market conditions warrant.
The company ended the quarter with approximately 224,000 lots under control, down 16,000 from a year earlier. It walked away from approximately 8,000 lots previously held under option during the quarter after determining those transactions no longer met risk-adjusted return thresholds.
PulteGroup repurchased 2.8 million shares for $350 million in the quarter and returned nearly $400 million to shareholders through repurchases and dividends. It ended the period with $1.4 billion in cash and a net debt-to-capital ratio of 3%.
Marshall said the company’s geographic diversity, land pipeline and balance sheet provide flexibility to manage a potentially prolonged period of elevated mortgage rates while continuing to evaluate market opportunities.
About PulteGroup (NYSE:PHM)PulteGroup, Inc is a major U.S. homebuilding company that designs, builds and sells homes for a range of buyers, including first-time, move-up and active-adult customers. Its operations include land acquisition and development, home construction, sales and marketing, and customer service.
The company markets homes under several well-known brands, including Pulte, Centex, Del Webb, DiVosta and American West. Through these brands, PulteGroup offers a variety of single-family home designs and communities, with products tailored to different price points, lifestyles and stages of homeownership.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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For the quarter ended September 2026, PulteGroup (PHM - Free Report) reported revenue of $3.97 billion, down 9.8% over the same period last year. EPS came in at $2.53, compared to $2.96 in the year-ago quarter.
The reported revenue represents a surprise of -3.85% over the Zacks Consensus Estimate of $4.13 billion. With the consensus EPS estimate being $2.63, the EPS surprise was -3.8%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how PulteGroup performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Average selling price - Total: $561.00 versus the four-analyst average estimate of $553.58.Net new orders - units - Total: 6,208 versus 6,953 estimated by four analysts on average.Average active communities: 1,077 compared to the 1,043 average estimate based on four analysts.Closings (units) - Total: 6,876 versus the four-analyst average estimate of 7,226.Unit backlog - Total: 10,298 versus the four-analyst average estimate of 10,693.Backlog dollars - Total: $6.44 billion compared to the $6.58 billion average estimate based on two analysts.Net new orders - dollars - Total: $3.5 billion versus the two-analyst average estimate of $3.73 billion.Homebuilding Revenues- Home sale revenues: $3.86 billion versus $3.99 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -9.2% change.Revenues- Financial Services: $107.03 million versus $98.73 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +3.7% change.Homebuilding Revenues: $3.87 billion versus the five-analyst average estimate of $4.03 billion. The reported number represents a year-over-year change of -10.1%.Homebuilding Revenues- Land sale and other revenues: $7.79 million versus $50.49 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -85.4% change.Income / (loss) before income taxes- Financial Services: $45.56 million compared to the $38.01 million average estimate based on four analysts.View all Key Company Metrics for PulteGroup here>>>
Shares of PulteGroup have returned -4.9% over the past month versus the Zacks S&P 500 composite's no change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Key Takeaways PHM's Q3 earnings fell 14.5% to $2.53 per share, while revenues declined 9.8% to $3.97 billion.PulteGroup's home closings fell 8.7%, while home sale gross margin contracted 140 bps to 24.8%.PHM's net new orders declined 6.5%, but backlog rose 4.1% to 10,298 homes, valued at $6.44 billion.
PulteGroup, Inc. (PHM - Free Report) reported weaker-than-expected third-quarter 2026 results, with earnings and total revenues missing the Zacks Consensus Estimate and declining year over year. Earnings fell 14.5%, while revenues decreased 9.8% from the prior-year quarter.
The quarterly performance reflected lower home-closing volumes, softer average selling prices (ASP) and margin compression. Persistently challenging housing affordability, rising mortgage rates and inflation weighed on homebuyer demand. Net new orders declined year over year, although the company's backlog increased in both units and dollar value.
PHM stock plunged almost 6% following the earnings release.
Inside PHM's Q3 Earnings HeadlinesQuarterly earnings were $2.53 per share, missing the Zacks Consensus Estimate of $2.63 by 3.8%. Earnings fell from $2.96 per share in the prior-year quarter.
Total revenues (Homebuilding & Financial Services) of $3.97 billion lagged the consensus mark of $4.13 billion by 3.9% and decreased 9.8% from $4.40 billion in the year-ago period.
Net income declined 18.8% year over year to $475.7 million from $585.8 million. Income before income taxes fell 18.6% to $625.2 million, reflecting weaker homebuilding profitability.
PulteGroup's Homebuilding Revenues Decline Y/YHomebuilding segment revenues decreased 10.1% year over year to $3.87 billion. Home sale revenues declined 9.2% to $3.86 billion, primarily reflecting lower home-closing volumes and a modest reduction in average selling prices. Land sale and other revenues dropped to $7.8 million from $53.2 million.
The number of homes closed fell 8.7% year over year to 6,876 units. Deliveries declined across all six geographic regions, with the West and Northeast witnessing particularly pronounced contractions. The ASP of homes delivered slipped 0.5% to $561,000 from $564,000.
Homebuilding income before income taxes decreased 19.9% year over year to $579.6 million from $723.4 million. The decline reflected reduced sales volumes and continued pressure on home-sale margins.
PHM's New Orders Fall, Backlog ImprovesNet new orders declined 6.5% year over year to 6,208 homes from 6,638. Orders increased in Florida but decreased across the remaining five geographic regions. The average community count rose 7% to 1,077, indicating that a larger selling footprint did not translate into higher overall orders.
The dollar value of net new orders fell 3.9% to $3.50 billion from $3.64 billion in the prior-year quarter.
PulteGroup ended the quarter with a backlog of 10,298 homes, up 4.1% year over year. Backlog units increased in the Northeast, Florida, Midwest and Texas, while the Southeast and West recorded declines. The value of homes in the backlog rose 3.4% to $6.44 billion, indicating a modest increase in the company's future home-delivery pipeline despite softer current-quarter demand.
PulteGroup's Margins Face PressureHome sale gross margin contracted 140 basis points (bps) year over year to 24.8% from 26.2%. The reported margin included $26 million of land impairments, representing approximately 70 bps of margin pressure.
Selling, general and administrative (SG&A) expenses declined to $397.2 million from $400.7 million. However, as a percentage of home sale revenues, SG&A expenses increased 90 bps to 10.3%, reflecting reduced operating leverage amid lower revenues.
Management emphasized its strategy of balancing home pricing and sales pace while aligning production with demand conditions. Move-up and active-adult buyers accounted for more than 60% of the company's business, supporting its focus on maintaining profitability amid housing-market challenges.
PHM's Financial Services PerformanceFinancial Services revenues increased 3.7% year over year to $107 million from $103.3 million. Segment income before income taxes improved 2.7% to $45.6 million from $44.4 million.
Mortgage origination volume declined 7.2% to 4,438 loans from 4,782, while origination principal fell 6.5% to $1.92 billion from $2.05 billion. The mortgage capture rate improved to 84.6% from 84.4%, reflecting a slightly higher proportion of eligible homebuyers using the company's mortgage services.
PulteGroup's Liquidity and Buybacks in FocusPulteGroup ended the quarter with $1.41 billion in cash, cash equivalents and restricted cash, down from $2.01 billion at 2025-end. Notes payable totaled $1.81 billion, resulting in a debt-to-capital ratio of 12.1% and a net debt-to-capital ratio of 3%.
Operating cash flow for the first nine months of 2026 declined 42.1% year over year to $637 million, partly reflecting a $1.15 billion increase in inventories. During the third quarter, PHM repurchased 2.8 million shares for $350 million.
For the first nine months, repurchases totaled $1.03 billion, representing approximately 8.4 million shares. The company continued returning capital to shareholders while maintaining a relatively low leverage position.
PHM’s Zacks Rank & A Few Construction ReleasesPulteGroup currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
KB Home (KBH - Free Report) reported third-quarter fiscal 2026 earnings of $1.05 per share, beating the Zacks Consensus Estimate of 88 cents by 19.3%. Earnings declined 34.8% from $1.61 per share in the year-ago quarter.
KBH’s total revenues of $1.30 billion surpassed the consensus mark of $1.29 billion by 0.4% but dropped 20% year over year. Results reflected lower deliveries and continued pricing pressure, partly offset by progress in the company’s Built to Order model. BTO homes represented 74% of deliveries, supporting sequential improvement in housing gross margin.
Lennar Corporation (LEN - Free Report) reported weaker-than-expected third-quarter fiscal 2026 (ended Aug. 31) results. Adjusted earnings of $1.23 per share missed the Zacks Consensus Estimate of $1.29 by 4.7% and fell 38.5% from $2.00 per share a year ago.
Lennar’s total revenues of $8.05 billion missed the consensus estimate of $8.33 billion by 3.4% and declined 8.6% year over year. Lower deliveries and home prices weighed on results amid affordability pressure. Inventory turn stood at 2.4 times.
United Rentals, Inc. (URI - Free Report) reported third-quarter 2026 results, with adjusted earnings per share and total revenues beating the Zacks Consensus Estimate and increasing year over year. URI’s adjusted earnings of $15.55 per share topped the Zacks Consensus Estimate of $13.83 by 12.4% and grew 32.9% year over year from $11.70 per share. URI’s total revenues rose 15.7% year over year to $4.89 billion and surpassed the consensus estimate of $4.69 billion by 4.3%.
United Rentals management raised its revenue outlook to $18-$18.2 billion from $17.5-$17.8 billion. Adjusted EBITDA is now projected at $8.3-$8.4 billion compared with $7.98-$8.13 billion previously.
PulteGroup (PHM - Free Report) came out with quarterly earnings of $2.53 per share, missing the Zacks Consensus Estimate of $2.63 per share. This compares to earnings of $2.96 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -3.80%. A quarter ago, it was expected that this homebuilder would post earnings of $2.38 per share when it actually produced earnings of $2.48, delivering a surprise of +4.2%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
PulteGroup, which belongs to the Zacks Building Products - Home Builders industry, posted revenues of $3.97 billion for the quarter ended September 2026, missing the Zacks Consensus Estimate by 3.85%. This compares to year-ago revenues of $4.4 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
PulteGroup shares have lost about 3.7% since the beginning of the year versus the S&P 500's gain of 13.3%.
What's Next for PulteGroup?While PulteGroup has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for PulteGroup was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.19 on $4.79 billion in revenues for the coming quarter and $10.06 on $16.31 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Home Builders is currently in the bottom 5% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Century Communities (CCS - Free Report) , another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on October 28.
This single-family homebuilder is expected to post quarterly earnings of $1.22 per share in its upcoming report, which represents a year-over-year change of -19.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Century Communities' revenues are expected to be $962 million, down 1.9% from the year-ago quarter.
ATLANTA--(BUSINESS WIRE)--PulteGroup, Inc. (NYSE: PHM) announced today financial results for its third quarter ended September 30, 2026. For the quarter, the Company reported net income of $476 million, or $2.53 per share. In the prior year period, the Company reported net income of $586 million, or $2.96 per share. “With homebuying demand increasingly pressured by rising mortgage rates, widespread inflation, and global unrest, we continue to benefit from our diversified operating platform and.
The upcoming report from PulteGroup (PHM - Free Report) is expected to reveal quarterly earnings of $2.62 per share, indicating a decline of 11.5% compared to the year-ago period. Analysts forecast revenues of $4.13 billion, representing a decline of 6.2% year over year.
The consensus EPS estimate for the quarter has been revised 0.2% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
With that in mind, let's delve into the average projections of some PulteGroup metrics that are commonly tracked and projected by analysts on Wall Street.
The average prediction of analysts places 'Homebuilding Revenues- Home sale revenues' at $3.99 billion. The estimate indicates a year-over-year change of -6%.
The consensus estimate for 'Revenues- Financial Services' stands at $98.72 million. The estimate indicates a year-over-year change of -4.4%.
The consensus among analysts is that 'Homebuilding Revenues' will reach $4.03 billion. The estimate indicates a year-over-year change of -6.2%.
Analysts' assessment points toward 'Homebuilding Revenues- Land sale and other revenues' reaching $50.50 million. The estimate suggests a change of -5% year over year.
The combined assessment of analysts suggests that 'Average selling price - Total' will likely reach $553.58 . The estimate is in contrast to the year-ago figure of $564.00 .
Analysts expect 'Net new orders - units - Total' to come in at 6,948 . Compared to the present estimate, the company reported 6,638 in the same quarter last year.
It is projected by analysts that the 'Average active communities' will reach 1,043 . The estimate compares to the year-ago value of 1,002 .
The collective assessment of analysts points to an estimated 'Unit backlog - Total' of 10,688 . The estimate compares to the year-ago value of 9,888 .
According to the collective judgment of analysts, 'Closings (units) - Total' should come in at 7,226 . The estimate is in contrast to the year-ago figure of 7,529 .
Based on the collective assessment of analysts, 'Backlog dollars - Total' should arrive at $6.58 billion. The estimate compares to the year-ago value of $6.23 billion.
Analysts forecast 'Net new orders - dollars - Total' to reach $3.73 billion. The estimate is in contrast to the year-ago figure of $3.64 billion.
Analysts predict that the 'Cancellation rates' will reach 15.5%. The estimate is in contrast to the year-ago figure of 16.0%.
View all Key Company Metrics for PulteGroup here>>>
Over the past month, PulteGroup shares have recorded returns of -3.2% versus the Zacks S&P 500 composite's +1.5% change. Based on its Zacks Rank #4 (Sell), PHM will likely underperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Key Takeaways PulteGroup's Q3 earnings and revenues are expected to decline 11.5% and 6.2%, respectively, year over year.PHM's home closings are projected to fall 2.9%, while gross margin is expected to contract to 24.6%.PHM's net new orders are forecast to rise 7%, with backlog units increasing 8.8% to 10,760. PulteGroup Inc. (PHM - Free Report) is scheduled to report its third-quarter 2026 results on Oct. 22, before the opening bell.
In the last reported quarter, earnings per share (EPS) were $2.48, beating the Zacks Consensus Estimate of $2.38 by 4.2%. Earnings declined 18.2% from $3.03 in the prior-year quarter. Total revenues (Homebuilding & Financial Services) of $3.983 billion edged past the consensus mark of $3.980 billion by 0.1% but fell 9.6% year over year.
PulteGroup’s earnings topped the consensus mark in three of the trailing four quarters and missed on one occasion, with an average surprise of 2.7%.
Trend in PHM Stock’s Estimate RevisionThe Zacks Consensus Estimate for PHM’s third-quarter EPS has decreased to $2.62 from $2.63 over the past 30 days. The estimated figure indicates an 11.5% decrease from the year-ago EPS of $2.96.
The consensus mark for total revenues is pegged at $4.13 billion, implying a 6.2% year-over-year decline.
Factors Likely to Have Shaped PulteGroup’s Q3 EarningsTopline: PulteGroup's third-quarter 2026 revenues are likely to have been weighed down by persistent affordability challenges, mortgage-rate volatility and cautious homebuyer sentiment. Elevated home prices and borrowing costs have continued to constrain purchasing power, particularly among first-time buyers. Intense competition across the housing market likely compelled the company to offer pricing incentives and mortgage-rate buydowns to stimulate demand, putting pressure on average selling prices (ASPs).
Furthermore, softer housing demand in Western markets, including California and the Pacific Northwest, likely constrained sales momentum, while uneven demand conditions across regions may have affected the mix of home closings. The company's ongoing transition toward a higher build-to-order mix and a disciplined approach to speculative inventory could also have limited near-term deliveries, as build-to-order homes generally require more time to complete.
Although expanding community count and relatively resilient demand in Florida, the Midwest and select Southeast markets likely provided some support, these positives may not have fully offset the broader housing market challenges. Our model predicts home closings to decline 2.9% year over year to 7,308 units, while ASP is expected to decrease 2.4% to $550,426, weighing on third-quarter home sale revenues.
Management guided for 7,000-7,400 home closings, with ASPs of $550,000-$560,000. Community count is expected to increase 3-5% year over year.
Margins: Margins are likely to have remained under pressure amid elevated incentives, higher land costs and competitive pricing. Management expects third-quarter home sale gross margin of 24.5-25%.
Our model projects home sale gross margin of 24.6%, down from 26.2% in the year-ago period. SG&A expenses, as a percentage of home sale revenues, are expected to be 8.9%, down 50 basis points year over year.
Lower construction costs and disciplined inventory management are likely to have provided some relief.
Orders & Backlogs: Our model expects net new orders to increase 7% year over year to 7,102 units. Total backlog is projected to rise 8.8% to 10,760 units, while backlog value is expected to increase 8% to $6.73 billion.
What Our Model Unveils for PHMOur proven model does not conclusively predict an earnings beat for PulteGroup this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
PHM’s Earnings ESP: The company has an Earnings ESP of -0.51%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank of PHM: The stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to ConsiderHere are other companies in the Zacks Construction sector, which, according to our model, have the right combination of elements to post an earnings beat.
Argan, Inc. (AGX - Free Report) has an Earnings ESP of +4.79% and a Zacks Rank of 3 at present.
Argan’s earnings beat estimates in all of the last four quarters, the average surprise being 44.2%. The company’s earnings for the third quarter of 2026 are expected to grow 53.9% year over year.
United Rentals (URI - Free Report) currently has an Earnings ESP of +1.17% and a Zacks Rank of 2.
United Rentals’ earnings beat estimates in two of the last four quarters and missed on the other two occasions, the average surprise being 1%. The company’s earnings for the third quarter are expected to increase 18.2% year over year.
Quanta Services (PWR - Free Report) has an Earnings ESP of +2.66% and a Zacks Rank of 3.
Quanta Services’ earnings beat estimates in all of the last four quarters, the average surprise being 17%. The company’s earnings for the third quarter of 2026 are expected to grow 50.5% year over year.
PulteGroup (PHM - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this homebuilder have returned -4.9% over the past month versus the Zacks S&P 500 composite's +1.4% change. The Zacks Building Products - Home Builders industry, to which PulteGroup belongs, has lost 4.8% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
PulteGroup is expected to post earnings of $2.62 per share for the current quarter, representing a year-over-year change of -11.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.3%.
The consensus earnings estimate of $10.08 for the current fiscal year indicates a year-over-year change of -11.9%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $10.86 indicates a change of +7.8% from what PulteGroup is expected to report a year ago. Over the past month, the estimate has changed -1.9%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, PulteGroup is rated Zacks Rank #4 (Sell).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of PulteGroup, the consensus sales estimate of $4.13 billion for the current quarter points to a year-over-year change of -6.2%. The $16.36 billion and $16.79 billion estimates for the current and next fiscal years indicate changes of -5.5% and +2.7%, respectively.
Last Reported Results and Surprise HistoryPulteGroup reported revenues of $3.98 billion in the last reported quarter, representing a year-over-year change of -9.6%. EPS of $2.48 for the same period compares with $3.03 a year ago.
Compared to the Zacks Consensus Estimate of $3.98 billion, the reported revenues represent a surprise of +0.06%. The EPS surprise was +4.2%.
Over the last four quarters, PulteGroup surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
PulteGroup is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about PulteGroup. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
PulteGroup (PHM - Free Report) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on October 22, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis homebuilder is expected to post quarterly earnings of $2.62 per share in its upcoming report, which represents a year-over-year change of -11.5%.
Revenues are expected to be $4.13 billion, down 6.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.25% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for PulteGroup?For PulteGroup, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.51%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that PulteGroup will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that PulteGroup would post earnings of $2.38 per share when it actually produced earnings of $2.48, delivering a surprise of +4.20%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
PulteGroup doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
PulteGroup (PHM - Free Report) closed at $109.13 in the latest trading session, marking a -2.2% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 1.11%. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 1.88%.
The homebuilder's stock has dropped by 6.6% in the past month, falling short of the Construction sector's loss of 3.55% and the S&P 500's gain of 2.06%.
Analysts and investors alike will be keeping a close eye on the performance of PulteGroup in its upcoming earnings disclosure. The company's earnings report is set to go public on October 22, 2026. In that report, analysts expect PulteGroup to post earnings of $2.62 per share. This would mark a year-over-year decline of 11.49%. Simultaneously, our latest consensus estimate expects the revenue to be $4.13 billion, showing a 6.17% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.08 per share and a revenue of $16.36 billion, indicating changes of -11.89% and -5.52%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for PulteGroup. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.02% rise in the Zacks Consensus EPS estimate. Currently, PulteGroup is carrying a Zacks Rank of #4 (Sell).
Looking at valuation, PulteGroup is presently trading at a Forward P/E ratio of 11.07. Its industry sports an average Forward P/E of 12.24, so one might conclude that PulteGroup is trading at a discount comparatively.
It is also worth noting that PHM currently has a PEG ratio of 1.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PHM's industry had an average PEG ratio of 2.1 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 238, this industry ranks in the bottom 4% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
ATLANTA--(BUSINESS WIRE)--Mountains, luxury design and wellness with a view. PulteGroup (NYSE: PHM), the nation's third-largest home builder, is bringing Explore by Del Webb to Utah's Jordanelle Ridge, marking the latest expansion of its newest brand. Launched in 2025, Explore draws on Del Webb's 65 years of experience creating resort-style communities. Offering a fresh perspective, Explore communities are centered on thoughtful designs, elevated amenities and experiences that make it easy to l.
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The U.S. housing market’s golden age is coming to an end, says Stephen Kim, a senior managing director and veteran housing industry analyst at Evercore ISI. What lies ahead is considerably less golden. Consumers are anxious, builders have excess inventory, and mortgage rates recently hit 7.28%, up from 5.98% at the beginning of the year. Demographic trends also bode poorly, as household formation is poised to decline in coming years.
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In the latest trading session, PulteGroup (PHM - Free Report) closed at $116.10, marking a +1.86% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.58%. Elsewhere, the Dow saw an upswing of 0.49%, while the tech-heavy Nasdaq appreciated by 0.45%.
Heading into today, shares of the homebuilder had lost 8.41% over the past month, lagging the Construction sector's loss of 3.73% and the S&P 500's gain of 0.84%.
Analysts and investors alike will be keeping a close eye on the performance of PulteGroup in its upcoming earnings disclosure. The company's earnings report is set to go public on October 22, 2026. The company's earnings per share (EPS) are projected to be $2.63, reflecting a 11.15% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $4.12 billion, indicating a 6.4% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.08 per share and a revenue of $16.34 billion, representing changes of -11.89% and -5.61%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for PulteGroup. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.4% fall in the Zacks Consensus EPS estimate. Currently, PulteGroup is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, PulteGroup is currently exchanging hands at a Forward P/E ratio of 11.31. This denotes a discount relative to the industry average Forward P/E of 12.42.
Investors should also note that PHM has a PEG ratio of 1.42 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 2.12.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 235, putting it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
PulteGroup (PHM - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this homebuilder have returned -7% over the past month versus the Zacks S&P 500 composite's +0.6% change. The Zacks Building Products - Home Builders industry, to which PulteGroup belongs, has lost 3.4% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
PulteGroup is expected to post earnings of $2.63 per share for the current quarter, representing a year-over-year change of -11.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.1%.
The consensus earnings estimate of $10.08 for the current fiscal year indicates a year-over-year change of -11.9%. This estimate has changed -0.4% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $11.04 indicates a change of +9.6% from what PulteGroup is expected to report a year ago. Over the past month, the estimate has changed -0.6%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for PulteGroup.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For PulteGroup, the consensus sales estimate for the current quarter of $4.12 billion indicates a year-over-year change of -6.4%. For the current and next fiscal years, $16.34 billion and $16.89 billion estimates indicate -5.6% and +3.4% changes, respectively.
Last Reported Results and Surprise HistoryPulteGroup reported revenues of $3.98 billion in the last reported quarter, representing a year-over-year change of -9.6%. EPS of $2.48 for the same period compares with $3.03 a year ago.
Compared to the Zacks Consensus Estimate of $3.98 billion, the reported revenues represent a surprise of +0.06%. The EPS surprise was +4.2%.
Over the last four quarters, PulteGroup surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
PulteGroup is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about PulteGroup. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
PulteGroup (PHM - Free Report) closed the most recent trading day at $116.06, moving -2.06% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.25%. Meanwhile, the Dow experienced a drop of 0.86%, and the technology-dominated Nasdaq saw an increase of 0.24%.
The homebuilder's stock has dropped by 3.76% in the past month, exceeding the Construction sector's loss of 4.32% and lagging the S&P 500's loss of 0.42%.
The investment community will be paying close attention to the earnings performance of PulteGroup in its upcoming release. The company is slated to reveal its earnings on October 22, 2026. In that report, analysts expect PulteGroup to post earnings of $2.63 per share. This would mark a year-over-year decline of 11.15%. At the same time, our most recent consensus estimate is projecting a revenue of $4.12 billion, reflecting a 6.4% fall from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.08 per share and revenue of $16.34 billion. These totals would mark changes of -11.89% and -5.61%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for PulteGroup. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.4% lower. Currently, PulteGroup is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that PulteGroup has a Forward P/E ratio of 11.76 right now. This valuation marks a discount compared to its industry average Forward P/E of 13.05.
It's also important to note that PHM currently trades at a PEG ratio of 1.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 2.45.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 235, this industry ranks in the bottom 5% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Rising bond yields can damage many industries and even the broader economy, as they set borrowing rates for many types of loans and can squeeze consumer spending and corporate profits alike. But if you're a homebuilder, you're really feeling the pinch right about now. Here's why.
Image source: Getty Images.
Yields on Treasury securities have been rising steadily this year, as bondholders have continued to sell their notes and bonds, sending prices down and yields, which move in the opposite direction, straight up. The 10-year yield hit 5.2% last week, up 1.26 percentage points from its level in late February, just before the war in the Persian Gulf began.
As a result, mortgage rates, which closely track the 10-year yield, have soared past 7% in recent weeks, the highest level in more than two years. That makes buying a home significantly more expensive and puts a real dent in homebuilders' fortunes.
The iShares U.S. Home Construction ETF (ITB -0.46%) is down 9.9% in just the past month. And no wonder, as its biggest holdings have plummeted in recent weeks. D.R. Horton (DHI -0.91%) has fallen 7% over the past month, PulteGroup (PHM -0.17%) is down 9.8%, and Lennar (LEN +0.21%) has drooped 8.1%.
NYSEMKT: ITBiShares Trust - iShares U.s. Home Construction ETF
Today's Change
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-0.46
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-0.41
Current Price
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89.02
There's no relief in sight for rising yields It doesn't appear that there is any relief in sight, either. Most bond market analysts attribute the rise in yields, at least in part, to soaring energy prices due to the Iran war.
Treasury Secretary Scott Bessent has said those higher prices are temporary and will recede quickly once the war is over. But others aren't so sure. This month, Chevron CEO Mike Wirth told a conference that various mechanisms capable of moderating oil prices -- including strategic reserves and commercial inventories among them -- are now largely spent. He suggested that even a quick and unexpected end to the conflict with Iran wouldn't likely bring prices down softly or quickly.
There's also the growing mountain of U.S. debt, which recently topped $40 trillion. U.S. government bonds become less attractive to investors when the government's issuance needs to ratchet up to fund government operations. Yet politicians in Washington have shown no signal whatsoever that they're prepared to take measures to reduce annual deficits.
Finally, massive bond issuance by hyperscalers to fund their AI data center build-out is competing with Treasury securities for investor capital, sending bond yields higher still. That borrowing and spending by mega-tech companies doesn't look like it will subside any time soon.
To be sure, 10-year treasury yields at this level are not unprecedented. In fact, many economists point to yields before the 2007-2008 to show that rising yields today are a reversion to the levels of that era.
But that will be cold comfort to homebuilders and their shareholders, who now have to struggle to sell houses when mortgage rates are more than double what they were just five years ago. As a result, homebuilders and related stocks, such as home improvement retailers, are not a great bet at the moment.
QRG Capital Management Inc. increased its stake in shares of PulteGroup, Inc. (NYSE:PHM – Free Report) by 9.6% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 151,274 shares of the construction company’s stock after buying an additional 13,312 shares during the period. QRG Capital Management Inc. owned 0.08% of PulteGroup worth $20,756,000 at the end of the most recent quarter.
Other institutional investors also recently modified their holdings of the company. Cedar Mountain Advisors LLC increased its holdings in shares of PulteGroup by 1,650.0% in the first quarter. Cedar Mountain Advisors LLC now owns 210 shares of the construction company’s stock valued at $25,000 after purchasing an additional 198 shares in the last quarter. NFSG Corp acquired a new stake in shares of PulteGroup in the 1st quarter valued at $29,000. HHM Wealth Advisors LLC raised its position in shares of PulteGroup by 158.5% during the first quarter. HHM Wealth Advisors LLC now owns 274 shares of the construction company’s stock worth $32,000 after acquiring an additional 168 shares during the last quarter. Mcdonald Partners LLC bought a new stake in shares of PulteGroup during the second quarter worth $43,000. Finally, Evelyn Partners Investment Management Services Ltd acquired a new position in shares of PulteGroup during the first quarter valued at $37,000. 89.90% of the stock is owned by institutional investors.
PulteGroup Stock Down 2.8% Shares of NYSE:PHM opened at $118.83 on Thursday. The company has a 50 day moving average price of $126.12 and a two-hundred day moving average price of $123.40. The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.78 and a current ratio of 0.78. The company has a market capitalization of $22.28 billion, a PE ratio of 12.14, a PEG ratio of 1.52 and a beta of 1.19. PulteGroup, Inc. has a 52 week low of $108.49 and a 52 week high of $144.49.
PulteGroup (NYSE:PHM – Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The construction company reported $2.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.36 by $0.12. PulteGroup had a return on equity of 15.21% and a net margin of 11.62%.The company had revenue of $3.98 billion during the quarter, compared to the consensus estimate of $3.94 billion. During the same period in the prior year, the company earned $3.03 earnings per share. The company’s revenue for the quarter was down 9.6% compared to the same quarter last year. Analysts forecast that PulteGroup, Inc. will post 10.07 earnings per share for the current year. PulteGroup Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Friday, October 2nd. Shareholders of record on Tuesday, September 15th will be issued a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a yield of 0.9%. The ex-dividend date is Tuesday, September 15th. PulteGroup’s dividend payout ratio (DPR) is 10.62%.
Wall Street Analysts Forecast Growth A number of analysts recently commented on PHM shares. Barclays lifted their price objective on PulteGroup from $123.00 to $124.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 23rd. Evercore reiterated an “outperform” rating and set a $162.00 price target on shares of PulteGroup in a research report on Thursday, July 23rd. Wells Fargo & Company dropped their price target on shares of PulteGroup from $150.00 to $145.00 and set an “overweight” rating for the company in a research note on Friday, September 11th. Royal Bank Of Canada increased their price objective on shares of PulteGroup from $115.00 to $116.00 and gave the company a “sector perform” rating in a report on Thursday, July 23rd. Finally, Citigroup reaffirmed a “market outperform” rating on shares of PulteGroup in a research note on Tuesday, August 18th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $140.93.
View Our Latest Analysis on PulteGroup
PulteGroup Company Profile (Free Report)
PulteGroup, Inc is a U.S. homebuilding company that designs, constructs and sells homes for a range of buyers, including first-time, move-up and active-adult customers. Its residential offerings include single-family homes, townhomes and communities in a variety of price ranges and styles.
The company operates through several well-known brands, including Pulte, Centex, Del Webb, DiVosta and American West Homes. Its communities are located across numerous metropolitan areas and regions in the United States, with operations spanning markets in the South, Southeast, Southwest, Midwest and West.
PulteGroup also provides mortgage lending and related title services to support home purchases through its financial-services operations.
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PulteGroup (PHM - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this homebuilder have returned -8.2%, compared to the Zacks S&P 500 composite's +1.3% change. During this period, the Zacks Building Products - Home Builders industry, which PulteGroup falls in, has lost 7.8%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, PulteGroup is expected to post earnings of $2.63 per share, indicating a change of -11.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.8% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $10.08 points to a change of -11.9% from the prior year. Over the last 30 days, this estimate has changed -0.4%.
For the next fiscal year, the consensus earnings estimate of $11.04 indicates a change of +9.6% from what PulteGroup is expected to report a year ago. Over the past month, the estimate has changed -0.6%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for PulteGroup.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of PulteGroup, the consensus sales estimate of $4.12 billion for the current quarter points to a year-over-year change of -6.4%. The $16.34 billion and $16.89 billion estimates for the current and next fiscal years indicate changes of -5.6% and +3.4%, respectively.
Last Reported Results and Surprise HistoryPulteGroup reported revenues of $3.98 billion in the last reported quarter, representing a year-over-year change of -9.6%. EPS of $2.48 for the same period compares with $3.03 a year ago.
Compared to the Zacks Consensus Estimate of $3.98 billion, the reported revenues represent a surprise of +0.06%. The EPS surprise was +4.2%.
Over the last four quarters, PulteGroup surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
PulteGroup is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about PulteGroup. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
PulteGroup (PHM - Free Report) ended the recent trading session at $117.55, demonstrating a -1.61% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.45%. Elsewhere, the Dow lost 1.21%, while the tech-heavy Nasdaq lost 0.01%.
The stock of homebuilder has fallen by 5.22% in the past month, leading the Construction sector's loss of 11.29% and undershooting the S&P 500's loss of 2.43%.
Analysts and investors alike will be keeping a close eye on the performance of PulteGroup in its upcoming earnings disclosure. The company's earnings report is set to go public on October 22, 2026. The company's earnings per share (EPS) are projected to be $2.63, reflecting a 11.15% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.12 billion, down 6.4% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.07 per share and revenue of $16.34 billion, indicating changes of -11.98% and -5.61%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for PulteGroup. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.41% lower within the past month. Right now, PulteGroup possesses a Zacks Rank of #3 (Hold).
With respect to valuation, PulteGroup is currently being traded at a Forward P/E ratio of 11.86. For comparison, its industry has an average Forward P/E of 13.32, which means PulteGroup is trading at a discount to the group.
Investors should also note that PHM has a PEG ratio of 1.48 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PHM's industry had an average PEG ratio of 2.56 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 208, placing it within the bottom 16% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PHM in the coming trading sessions, be sure to utilize Zacks.com.
Two recent data points are shaking homebuilder stocks. The 10-year Treasury note briefly hit 5%, and the rate on a 30-year fixed mortgage climbed back to 7%.
This flies in the face of the bull case that’s been made for homebuilders. That argument includes a structural housing demand that many industry analysts put at around five million units.
But who’s going to buy those homes? The housing market is locked into a battle between current homeowners who won’t (or can’t) sell, and prospective buyers who find the dream of home ownership to be increasingly elusive.
So, it’s not surprising that homebuilder stocks are down in 2026. The more interesting question is why aren’t they down more, and why do consensus price targets suggest there’s a generous upside for these stocks?
Get D.R. Horton alerts:
Are Analysts Betting on Transitory Mortgage Rates?In early 2020, then Federal Reserve Chair Jerome Powell referred to high inflation as “transitory.” It was a misjudgment in timing, not in theory. Powell was correct that the worst of the inflation was temporary. However, it never reached the Fed’s preferred 2% target, and in 2026, the U.S. conflict with Iran is keeping inflation uncomfortably high.
Here’s the connection to homebuilder stocks. Analysts have a bull case on mortgage rates moving lower. For that to happen, interest rates need to move lower, not higher.
History suggests that’s the right way to look at it. Because when interest rates (and mortgage rates) drop, it should stimulate housing demand. But much like Powell in 2020, those analysts may be pricing homebuilder stocks based on a theory that runs counter to reality.
D.R. Horton Gave Investors a Statistic That Tells It AllD.R. Horton Inc. NYSE: DHI is one of the leading names in the single-family homebuilder segment. DHI has been drifting towards its 52-week low and is down 3% in 2026.
D.R. Horton Today
$141.54 +1.34 (+0.95%)
As of 09:55 AM Eastern
This is a fair market value price provided by Massive. Learn more.
$131.75▼
$177.581.27%
13.47
$166.08
That hardly argues that DHI is overvalued. But that’s not the point. The point is that the consensus price target of the analysts tracked by MarketBeat is $166.08, an implied 18% upside from its current level. That price target is actually higher than it was 12 months ago.
This is where the bull case gets stressed. In its Q3 2026 earnings report, the homebuilder reported a 20% cancellation rate, up from 17% one year ago. That speaks to both affordability constraints and cautious consumer sentiment.
On the other hand, over 90% of DHI stock is owned by institutions, and in the most recent quarter, buying outpaced selling by about 10:1. That’s a contradiction that suggests investors with the deepest pockets were expecting an outcome that seems less likely.
The Outlier That Proves the RuleOn a single data point, Pulte Group Inc. NYSE: PHM is bucking the negative trend in homebuilder stocks. That is, PHM has managed a gain of 2% in 2026. It’s a tepid gain, and the stock is down 8% in the month ending Sept. 15, but a gain is a gain.
PulteGroup Today
$119.68 +0.21 (+0.18%)
As of 09:55 AM Eastern
This is a fair market value price provided by Massive. Learn more.
$108.49▼
$144.490.87%
12.23
$140.93
Analyst sentiment is consistent with the broader sector. The consensus price target from the analysts tracked by MarketBeat is $141.87, implying an 18.6% gain. Plus, 14 of 19 analysts rate PHM a Buy, with no Sell ratings. About 89% of the PHM stock float is owned by institutions, with buying outpacing selling in seven of the past eight quarters.
Pulte Group does have a couple of reasons for investor optimism. First, its strongest market is in Florida, which has fared better than other markets. The company has also recommitted to its build-to-order (BTO) business model. In Q2 2026, BTO represented 45% of new orders.
Do LEN Investors Have the Sentiment Right?Lennar Corp. NYSE: LEN is down 22% in 2026 and 40% in the last 12 months. The consensus price target of $91 suggests about 14% upside. But that’s about the only thing Lennar has in common with the other stocks on this list.
Lennar Today
$80.72 +0.65 (+0.82%)
As of 09:55 AM Eastern
This is a fair market value price provided by Massive. Learn more.
$76.63▼
$139.442.48%
12.63
$91.00
Of the 19 analysts tracked by MarketBeat, 10 have a Sell rating on LEN. That’s an unusually high percentage in any sector, even one as beaten down as the homebuilders, and the stock has a consensus rating of Reduce. In this case, at least, there appear to be valid reasons for the pessimism. While 81% of the stock’s float is owned by institutions, selling has outpaced buying in two of the last four quarters.
Lennar also carries about 8% short interest, which isn’t high on a broader market basis, but it’s the highest of the three stocks in this group.
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PulteGroup (PHM - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this homebuilder have returned -10.8%, compared to the Zacks S&P 500 composite's -2% change. During this period, the Zacks Building Products - Home Builders industry, which PulteGroup falls in, has lost 8.6%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, PulteGroup is expected to post earnings of $2.63 per share, indicating a change of -11.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.4% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $10.07 points to a change of -12% from the prior year. Over the last 30 days, this estimate has changed -0.1%.
For the next fiscal year, the consensus earnings estimate of $11.06 indicates a change of +9.8% from what PulteGroup is expected to report a year ago. Over the past month, the estimate has changed -0.4%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for PulteGroup.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of PulteGroup, the consensus sales estimate of $4.12 billion for the current quarter points to a year-over-year change of -6.4%. The $16.34 billion and $16.89 billion estimates for the current and next fiscal years indicate changes of -5.6% and +3.4%, respectively.
Last Reported Results and Surprise HistoryPulteGroup reported revenues of $3.98 billion in the last reported quarter, representing a year-over-year change of -9.6%. EPS of $2.48 for the same period compares with $3.03 a year ago.
Compared to the Zacks Consensus Estimate of $3.98 billion, the reported revenues represent a surprise of +0.06%. The EPS surprise was +4.2%.
Over the last four quarters, PulteGroup surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
PulteGroup is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about PulteGroup. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
California State Teachers Retirement System raised its position in shares of PulteGroup, Inc. (NYSE:PHM – Free Report) by 13,473.6% in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 37,204,217 shares of the construction company’s stock after buying an additional 36,930,125 shares during the period. California State Teachers Retirement System owned about 19.85% of PulteGroup worth $5,104,791,000 at the end of the most recent reporting period.
Several other institutional investors have also added to or reduced their stakes in PHM. Norges Bank bought a new position in shares of PulteGroup during the fourth quarter valued at about $466,653,000. Price T Rowe Associates Inc. MD grew its stake in shares of PulteGroup by 126.5% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,284,197 shares of the construction company’s stock worth $502,366,000 after purchasing an additional 2,392,580 shares during the last quarter. Bank of New York Mellon Corp bought a new stake in shares of PulteGroup in the second quarter worth about $189,931,000. Public Sector Pension Investment Board increased its holdings in PulteGroup by 5,485.0% during the 4th quarter. Public Sector Pension Investment Board now owns 930,622 shares of the construction company’s stock valued at $109,125,000 after purchasing an additional 913,959 shares during the period. Finally, Franklin Resources Inc. increased its holdings in PulteGroup by 5.1% during the 4th quarter. Franklin Resources Inc. now owns 13,555,304 shares of the construction company’s stock valued at $1,589,495,000 after purchasing an additional 655,033 shares during the period. Hedge funds and other institutional investors own 89.90% of the company’s stock.
PulteGroup Stock Performance Shares of PHM opened at $118.92 on Thursday. The company has a debt-to-equity ratio of 0.14, a current ratio of 0.78 and a quick ratio of 0.78. PulteGroup, Inc. has a one year low of $108.49 and a one year high of $144.49. The company has a 50-day simple moving average of $127.86 and a two-hundred day simple moving average of $124.59. The firm has a market capitalization of $22.29 billion, a PE ratio of 12.15, a price-to-earnings-growth ratio of 1.49 and a beta of 1.19.
PulteGroup (NYSE:PHM – Get Free Report) last posted its earnings results on Wednesday, July 22nd. The construction company reported $2.48 earnings per share for the quarter, topping analysts’ consensus estimates of $2.36 by $0.12. PulteGroup had a return on equity of 15.21% and a net margin of 11.62%.The firm had revenue of $3.98 billion for the quarter, compared to the consensus estimate of $3.94 billion. During the same quarter in the prior year, the business earned $3.03 EPS. The business’s revenue for the quarter was down 9.6% on a year-over-year basis. On average, analysts anticipate that PulteGroup, Inc. will post 10.12 EPS for the current fiscal year. PulteGroup Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Friday, October 2nd. Investors of record on Tuesday, September 15th will be given a dividend of $0.26 per share. The ex-dividend date is Tuesday, September 15th. This represents a $1.04 annualized dividend and a dividend yield of 0.9%. PulteGroup’s payout ratio is currently 10.62%.
Analyst Upgrades and Downgrades Several equities research analysts have weighed in on the company. UBS Group reiterated a “buy” rating and issued a $166.00 price objective on shares of PulteGroup in a report on Thursday, July 23rd. Benchmark raised PulteGroup to a “strong-buy” rating in a research note on Thursday, September 3rd. Oppenheimer restated an “outperform” rating on shares of PulteGroup in a report on Tuesday, May 26th. Wells Fargo & Company raised their price target on PulteGroup from $140.00 to $150.00 and gave the stock an “overweight” rating in a research note on Monday, July 6th. Finally, Wolfe Research set a $129.00 price target on shares of PulteGroup and gave the company an “outperform” rating in a report on Monday, August 24th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $142.20.
Read Our Latest Report on PulteGroup
PulteGroup Profile (Free Report)
PulteGroup, Inc is a U.S. homebuilding company that designs, constructs and sells homes for a range of buyers, including first-time, move-up and active-adult customers. Its residential offerings include single-family homes, townhomes and communities in a variety of price ranges and styles.
The company operates through several well-known brands, including Pulte, Centex, Del Webb, DiVosta and American West Homes. Its communities are located across numerous metropolitan areas and regions in the United States, with operations spanning markets in the South, Southeast, Southwest, Midwest and West.
PulteGroup also provides mortgage lending and related title services to support home purchases through its financial-services operations.
Read More Five stocks we like better than PulteGroup Qualcomm’s Data Center Bet Looks More Real After Amazon’s AI Deal GE Aerospace’s $11.75B Deal Puts Howmet Aerospace in Focus Casey’s Post-Earnings Drop May Give Investors a Better Entry Into a Quality Retailer Sovereign AI: Palantir and Nebius Cut the Cloud Cord Want to see what other hedge funds are holding PHM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for PulteGroup, Inc. (NYSE:PHM – Free Report).
Receive News & Ratings for PulteGroup Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PulteGroup and related companies with MarketBeat.com's FREE daily email newsletter.
PulteGroup (PHM - Free Report) closed the most recent trading day at $120.07, moving -3.52% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.58%. Elsewhere, the Dow saw a downswing of 1.18%, while the tech-heavy Nasdaq depreciated by 0.32%.
Coming into today, shares of the homebuilder had lost 4.31% in the past month. In that same time, the Construction sector lost 7.66%, while the S&P 500 lost 0.36%.
The investment community will be paying close attention to the earnings performance of PulteGroup in its upcoming release. The company is slated to reveal its earnings on October 22, 2026. The company is expected to report EPS of $2.65, down 10.47% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $4.14 billion, indicating a 5.91% decrease compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.12 per share and revenue of $16.4 billion. These totals would mark changes of -11.54% and -5.29%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for PulteGroup. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.35% higher within the past month. PulteGroup is currently a Zacks Rank #3 (Hold).
Investors should also note PulteGroup's current valuation metrics, including its Forward P/E ratio of 12.3. This signifies a discount in comparison to the average Forward P/E of 13.59 for its industry.
One should further note that PHM currently holds a PEG ratio of 1.54. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. PHM's industry had an average PEG ratio of 2.68 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 38% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PHM in the coming trading sessions, be sure to utilize Zacks.com.
Most investors have heard by now that yields on government bonds are soaring. It's been on the front page of every newspaper.
Yields are rising as bond investors around the world are selling many of their longer-maturity bonds -- like those maturing in five, 10, and 30 years -- amid worries about rising U.S. government debt and inflation. When they sell those bonds, their prices fall and their yields, which move in the opposite direction of price, rise.
That might seem to many stock investors like a bond market problem -- and thus nothing to really worry about. But in fact, rising yields have a huge impact on the stock market in multiple ways.
One particular impact of rising yields is on homebuilder and automaker stocks. Because auto and home loans are based on bond yields, higher yields make home and auto purchases more expensive to finance.
Image source: Getty Images.
The average car loan length is about six years -- 5.8 years for new cars and 5.6 years for used cars. So, lenders use the five-year Treasury yield as their base index cost. And that yield has risen this year to 4.55%, up from 3.73% as of Jan. 1. As a result, the average rate on a 60-month car loan is now around 7%, though it was as high as 9.45% in April.
As a result, buying a car is now more expensive. Investors know this, and that's part of the reason automaker stocks are down all of a sudden. General Motors (GM -0.19%) shares have fallen 5% over the past month, while Ford Motor Company (F +0.87%) shares have dropped 5.8%.
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Rising yields only add to the housing sector's pain It's a similar story with mortgage rates. A typical mortgage is 30 years, but the rate on those loans rises and falls with the 10-year Treasury yield because many homeowners refinance their loans long before 30 years. That yield is soaring, hitting 4.8% this week, from about 4.1% at the beginning of the year.
As a result, the average 30-year mortgage rate now stands at 6.7%, according to Freddie Mac, double what it was five years ago. That higher rate has two big negative impacts on the housing market: It makes buying a house much more expensive, putting a home purchase out of reach for many Americans. It also discourages longtime homeowners like me, who enjoy mortgages with rates near 3%, from selling, because they don't want to take on a new home loan at twice the interest rate.
That's partially why homebuilder stocks are suffering. Lennar (LEN -0.66%) is down almost 19% this year, though it rebounded a bit in recent weeks. PulteGroup (PHM +0.23%) is up 5.6% for the year but has fallen more than 2% over the past month. And D.R. Horton (DHI -0.91%) has fallen 1.2% this year and about 0.5% over the past month.
Of course, the housing industry has been suffering for a while, as rising home prices -- due to a national shortage of some 5 million homes -- sent the median sales price of a new home above $440,000 in June. That puts a home purchase well out of the reach of many Americans. And rising mortgage rates only aggravate that unaffordability.
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Yields look to remain elevated for the foreseeable future The question for these companies and their shareholders, then, is, when will yields -- and the borrowing rates based on them -- come back down?
That's hard to say. Headline inflation of 3.7% remains well above the Federal Reserve's 2% target. And U.S. government debt, which just hit a whopping $40 trillion, looks to only accelerate, with lawmakers in Washington proving unable to bring it down right now. Finally, the massive bond issuance by hyperscalers to fund their AI data centers -- hundreds of billions of dollars -- is competing with Treasury bonds for buyers. That also pushes Treasury yields higher, and it only looks to continue.
Bottom line: Automakers and homebuilder stocks have a new headwind that doesn't look to die down anytime soon.
ATLANTA--(BUSINESS WIRE)--PulteGroup, Inc. (NYSE: PHM) announced today that its Board of Directors has declared a quarterly dividend of $0.26 per common share payable October 2, 2026, to shareholders of record at the close of business on September 15, 2026.
About PulteGroup
PulteGroup, Inc. (NYSE: PHM), based in Atlanta, Georgia, is one of America’s largest homebuilding companies with operations in more than 45 markets throughout the country. Through its brand portfolio that includes Pulte Homes, Centex, Del Webb, DiVosta Homes, and John Wieland Homes and Neighborhoods, the company is one of the industry’s most versatile homebuilders able to meet the needs of multiple buyer groups and respond to changing consumer demand. PulteGroup’s purpose is building incredible places where people can live their dreams.
For more information about PulteGroup, Inc. and PulteGroup brands, go to pultegroup.com; pulte.com; centex.com; delwebb.com; divosta.com; and jwhomes.com. Follow PulteGroup, Inc. on X: @PulteGroupNews.
PulteGroup's Third Quarter 2026 Earnings Release and Webcast Conference Call Scheduled for October 22, 2026 PulteGroup, Inc. (NYSE: PHM) today announced that it will release its third quarter 2026 financial results before the market opens on Thursday, October 22, 2026. The Company will hold a conference call to discuss its third quarter results that same day at 8:30 a.m. (ET).
A live audio webcast of the call will be available on PulteGroup’s website. To listen to the webcast, log on five minutes prior to the call at www.pultegroup.com and select the Events & Presentations link under the Investor tab.
For call participants, the dial-in number is (833) 461-5787 (conference ID 150962034). The call will be recorded and available for audio replay within 24 hours. An archive of the conference call will be available on the PulteGroup website.
About PulteGroup
PulteGroup, Inc. (NYSE: PHM), based in Atlanta, Georgia, is one of America’s largest homebuilding companies with operations in more than 45 markets throughout the country. Through its brand portfolio that includes Pulte Homes, Centex, Del Webb, DiVosta Homes, and John Wieland Homes and Neighborhoods, the company is one of the industry’s most versatile homebuilders able to meet the needs of multiple buyer groups and respond to changing consumer demand. PulteGroup’s purpose is building incredible places where people can live their dreams.
For more information about PulteGroup, Inc. and PulteGroup brands, go to pultegroup.com; pulte.com; centex.com; delwebb.com; divosta.com; and jwhomes.com. Follow PulteGroup, Inc. on X: @PulteGroupNews.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260827556960/en/
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
In the latest trading session, PulteGroup (PHM - Free Report) closed at $126.75, marking a -2.52% move from the previous day. This change lagged the S&P 500's 0.72% gain on the day. Meanwhile, the Dow experienced a rise of 0.2%, and the technology-dominated Nasdaq saw an increase of 1.57%.
The homebuilder's stock has dropped by 1.72% in the past month, exceeding the Construction sector's loss of 4.37% and lagging the S&P 500's gain of 3.68%.
The investment community will be closely monitoring the performance of PulteGroup in its forthcoming earnings report. The company is expected to report EPS of $2.65, down 10.47% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.14 billion, down 5.91% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.12 per share and revenue of $16.4 billion, which would represent changes of -11.54% and -5.29%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for PulteGroup. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.35% rise in the Zacks Consensus EPS estimate. At present, PulteGroup boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that PulteGroup has a Forward P/E ratio of 12.85 right now. Its industry sports an average Forward P/E of 14.58, so one might conclude that PulteGroup is trading at a discount comparatively.
Meanwhile, PHM's PEG ratio is currently 1.61. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Building Products - Home Builders industry stood at 2.92 at the close of the market yesterday.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 101, positioning it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
It has been about a month since the last earnings report for PulteGroup (PHM - Free Report) . Shares have added about 2.4% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is PulteGroup due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
PulteGroup Q2 Earnings & Revenues Beat Estimates, New Orders Up Y/YPulteGroup reported better-than-expected second-quarter 2026 results, with adjusted earnings and total revenues topping the Zacks Consensus Estimate, but declining year over year.
The quarterly results reflect reduced home-closing volumes, softer average selling prices (ASP) and margin compression. Ongoing softness in the housing market because of weaker consumer confidence and ongoing affordability challenges due to high mortgage rates hurt the top-line growth.
Inside PulteGroup’s Q2 HeadlinesQuarterly earnings were $2.48 per share, beating the Zacks Consensus Estimate of $2.38 by 4.2%. Earnings declined 18.2% from $3.03 in the prior-year quarter.
Total revenues (Homebuilding & Financial Services) of $3.983 billion edged past the consensus mark of $3.980 billion by 0.1% but fell 9.6% year over year.
PulteGroup’s Homebuilding HighlightsHomebuilding segment’s revenues decreased 9.7% year over year to $3.89 billion. Home sale revenues fell 10.8% to $3.81 billion, reflecting weaker delivery volumes and lower average pricing. Land sale and other revenues increased to $78.9 million from $34.6 million.
The number of homes closed declined 8.4% year over year to 6,997 units. Deliveries decreased across the Northeast, Midwest, Texas and West regions, while closings in the Southeast and Florida remained relatively stable. The ASP of homes delivered fell 2.7% to $544,000 from $559,000.
Net new orders increased 6.4% year over year to 7,536 homes. Order growth was recorded across all buyer groups, supported by an 8% increase in average community count to 1,074. The dollar value of net new orders rose 5.1% to $4.08 billion.
PulteGroup ended the quarter with a backlog of 10,966 homes, up 1.7% from the prior-year level. Backlog units increased in the Northeast, Florida, Midwest and Texas, while the Southeast and West reported declines. The value of homes in backlog slipped 0.6% to $6.80 billion. The divergence between higher units and lower value indicates that the average value of homes in backlog declined year over year, consistent with the company’s broader pricing pressure.
Home sale gross margin contracted 200 basis points (bps) year over year to 25%. However, the metric improved 60 basis points sequentially from the first quarter of 2026, indicating some near-term stabilization in profitability.
Selling, general and administrative (SG&A) expenses declined to $383 million from $390 million. However, as a percentage of home sale revenues, SG&A expenses increased 100 bps to 10.1%, as the lower revenue base reduced operating leverage.
PulteGroup’s Financial Services DetailsFinancial Services revenues declined 4.2% to $96.9 million. Overall, the revenue mix reflected continued housing-market pressure as affordability constraints, volatile mortgage rates and economic uncertainty affected buyer activity.
Mortgage origination volume decreased to 4,629 loans from 4,984, while origination principal fell to $1.98 billion from $2.16 billion. The mortgage capture rate improved modestly to 85.2% from 84.8%.
PHM’s Liquidity and Buybacks Stay in FocusPulteGroup ended the quarter with $1.38 billion in cash, cash equivalents and restricted cash. Notes payable totaled $1.82 billion, resulting in a debt-to-capital ratio of 12.3% and a net debt-to-capital ratio of 3.3%.
Operating cash flow for the first six months of 2026 declined 58.1% year over year to $176.8 million, partly reflecting an $807.3 million increase in inventories. During the second quarter, PHM repurchased 3.1 million shares for $373 million. First-half repurchases totaled $681.2 million, representing 5.5 million shares.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.
VGM ScoresCurrently, PulteGroup has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, PulteGroup has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerPulteGroup belongs to the Zacks Building Products - Home Builders industry. Another stock from the same industry, D.R. Horton (DHI - Free Report) , has gained 3.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
D.R. Horton reported revenues of $9.23 billion in the last reported quarter, representing a year-over-year change of +0%. EPS of $3.20 for the same period compares with $3.36 a year ago.
D.R. Horton is expected to post earnings of $3.10 per share for the current quarter, representing a year-over-year change of +2%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.5%.
D.R. Horton has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
ATLANTA--(BUSINESS WIRE)--More than nine out of ten PulteGroup employees say the company is a great place to work, according to the latest Great Place To Work® survey. Based on employee feedback, PulteGroup, Inc. (NYSE: PHM), America's third-largest homebuilding company, has earned Great Place To Work Certification™ for the eighth time. This year, 92% of employees said PulteGroup is a great place to work, compared with 57% at a typical U.S. company.
"A leadership team doesn’t win awards like this. They're earned by thousands of people who choose every day to support one another, serve our customers, and uphold our values," said Ryan Marshall, President and CEO of PulteGroup. "That's what has defined PulteGroup for generations, and it's what gives me confidence in where we're headed."
The survey results reinforce the strength of PulteGroup's culture across every stage of the employee experience. 97% of employees said they felt welcome when they joined the company, while 95% said management is honest and ethical in its business practices. An equal 95% said they are proud to tell others they work at PulteGroup and that they are given a great deal of responsibility in their roles.
Those results reflect a culture supported by career development opportunities, Business Resource Groups, community initiatives like Built to Honor®, and a joint commitment to helping teammates succeed.
"One of the things I'm most proud of is that our culture is consistent, whether you've been here two weeks or twenty years," said Kevin Henry, Chief People Officer. "We want every employee to feel welcomed, trusted, challenged and supported. Seeing those experiences reflected so strongly in this year's survey tells us we're continuing to create an environment where people can thrive."
Great Place To Work® is the global authority on workplace culture, employee experience, and the leadership behaviors proven to deliver market-leading revenue, employee retention and increased innovation.
"Great Place To Work Certification is a highly coveted achievement that requires consistent and intentional dedication to the overall employee experience," says Sarah Lewis-Kulin, the Vice President of Global Recognition at Great Place To Work. She emphasizes that Certification is the sole official recognition earned by the real-time feedback of employees regarding their company culture. “By successfully earning this recognition, it is evident that PulteGroup stands out as one of the top companies to work for, providing a great workplace environment for its employees."
For information about career opportunities at PulteGroup, visit https://pultegroup.wd1.myworkdayjobs.com/PGI.
About PulteGroup
PulteGroup, Inc. (NYSE: PHM), based in Atlanta, Georgia, is one of America’s largest homebuilding companies with operations in more than 45 markets throughout the country. Through its brand portfolio that includes Pulte Homes, Centex, Del Webb, DiVosta Homes, and John Wieland Homes and Neighborhoods, the company is one of the industry’s most versatile homebuilders able to meet the needs of multiple buyer groups and respond to changing consumer demand. PulteGroup’s purpose is building incredible places where people can live their dreams.
For more information about PulteGroup, Inc. and PulteGroup brands, go to pultegroup.com; pulte.com; centex.com; delwebb.com; divosta.com; and jwhomes.com. Follow PulteGroup, Inc. on X: @PulteGroupNews.
About Great Place to Work Certification™
Great Place To Work® Certification™ is the most definitive “employer-of-choice” recognition that companies aspire to achieve. It is the only recognition based entirely on what employees report about their workplace experience – specifically, how consistently they experience a high-trust workplace. Great Place to Work Certification is recognized worldwide by employees and employers alike and is the global benchmark for identifying and recognizing outstanding employee experience. Every year, more than 10,000 companies across 60 countries apply to get Great Place To Work-Certified.
About Great Place To Work®
As the global authority on workplace culture, Great Place To Work® brings 30 years of groundbreaking research and data to help every place become a great place to work for all. Their proprietary platform and For All™ Model helps companies evaluate the experience of every employee, with exemplary workplaces becoming Great Place To Work Certified™ or receiving recognition on a coveted Best Workplaces™ List.
Learn more at greatplacetowork.com and follow Great Place To Work on LinkedIn, Twitter, Facebook and Instagram.
ATLANTA--(BUSINESS WIRE)--PulteGroup, one of the nation's largest homebuilders, is expanding its operations into Northwest Florida and launching a new Florida Panhandle Division to support those efforts, the company announced today. The expansion positions the company for growth as it continues to see strong demand for new homes across Florida. PulteGroup is naming Taylor Larza as Vice President and Market Manager for the new division. "Florida continues to be one of PulteGroup's strongest mark.
Bank of Nova Scotia lowered its holdings in PulteGroup, Inc. (NYSE:PHM – Free Report) by 65.7% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 49,671 shares of the construction company’s stock after selling 95,225 shares during the quarter. Bank of Nova Scotia’s holdings in PulteGroup were worth $5,842,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Other hedge funds and other institutional investors have also recently modified their holdings of the company. Cedar Mountain Advisors LLC boosted its stake in shares of PulteGroup by 1,650.0% during the 1st quarter. Cedar Mountain Advisors LLC now owns 210 shares of the construction company’s stock worth $25,000 after acquiring an additional 198 shares during the last quarter. NFSG Corp bought a new position in PulteGroup in the 1st quarter worth $29,000. Rachor Investment Advisory Services LLC bought a new position in PulteGroup in the 4th quarter worth $31,000. DV Equities LLC purchased a new position in PulteGroup during the fourth quarter valued at $32,000. Finally, HHM Wealth Advisors LLC lifted its position in PulteGroup by 158.5% during the first quarter. HHM Wealth Advisors LLC now owns 274 shares of the construction company’s stock valued at $32,000 after purchasing an additional 168 shares in the last quarter. 89.90% of the stock is owned by institutional investors.
Insider Buying and Selling at PulteGroup In other PulteGroup news, COO Matthew William Koart sold 7,457 shares of the stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $120.00, for a total value of $894,840.00. Following the completion of the sale, the chief operating officer owned 28,100 shares in the company, valued at approximately $3,372,000. This represents a 20.97% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Lila Snyder sold 3,339 shares of the business’s stock in a transaction on Friday, May 8th. The stock was sold at an average price of $117.18, for a total value of $391,264.02. Following the transaction, the director directly owned 3,540 shares in the company, valued at $414,817.20. This trade represents a 48.54% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 0.75% of the company’s stock.
PulteGroup Price Performance Shares of PHM stock opened at $130.44 on Tuesday. The stock’s 50-day moving average is $124.49 and its 200 day moving average is $125.35. PulteGroup, Inc. has a 1-year low of $108.49 and a 1-year high of $144.49. The company has a debt-to-equity ratio of 0.14, a current ratio of 0.78 and a quick ratio of 0.78. The company has a market cap of $24.45 billion, a P/E ratio of 13.32, a PEG ratio of 1.60 and a beta of 1.18.
PulteGroup (NYSE:PHM – Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The construction company reported $2.48 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.36 by $0.12. PulteGroup had a net margin of 11.62% and a return on equity of 15.21%. The business had revenue of $3.98 billion during the quarter, compared to analysts’ expectations of $3.94 billion. During the same quarter last year, the company posted $3.03 earnings per share. The business’s quarterly revenue was down 9.6% on a year-over-year basis. Research analysts predict that PulteGroup, Inc. will post 10.08 earnings per share for the current fiscal year.
PulteGroup declared that its board has authorized a share buyback program on Thursday, April 23rd that authorizes the company to buyback $1.50 billion in shares. This buyback authorization authorizes the construction company to buy up to 6.1% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board believes its stock is undervalued.
PulteGroup Dividend Announcement The business also recently disclosed a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Tuesday, June 16th were issued a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend was Tuesday, June 16th. PulteGroup’s dividend payout ratio (DPR) is presently 10.62%.
Analysts Set New Price Targets A number of equities research analysts have issued reports on PHM shares. Barclays increased their price target on PulteGroup from $123.00 to $124.00 and gave the stock an “equal weight” rating in a research note on Thursday. Seaport Research Partners reiterated a “sell” rating and set a $100.00 target price (down from $155.00) on shares of PulteGroup in a research report on Tuesday, April 7th. Oppenheimer reissued an “outperform” rating on shares of PulteGroup in a research note on Tuesday, May 26th. Zacks Research raised PulteGroup from a “strong sell” rating to a “hold” rating in a report on Monday, April 13th. Finally, UBS Group restated a “buy” rating and issued a $166.00 price target on shares of PulteGroup in a research note on Thursday. Ten equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, PulteGroup currently has a consensus rating of “Moderate Buy” and an average target price of $143.14.
View Our Latest Stock Report on PulteGroup
About PulteGroup (Free Report)
PulteGroup, Inc (NYSE: PHM) is a U.S.-based residential homebuilder that designs, constructs and sells single-family homes and develops master-planned communities. The company operates multiple national and regional brands that target different buyer segments, including first-time buyers, move-up buyers and active-adult customers. Its operations encompass land acquisition and development, home design and construction, community amenities and ongoing customer service and warranty programs.
PulteGroup markets homes under several well-known brands, such as Pulte Homes, Centex and Del Webb, among others, offering a range of product types from entry-level detached homes to larger, higher-end residences and age-restricted active-adult communities.
Recommended Stories Five stocks we like better than PulteGroup AirJoule’s Kubota Deal Is a Major Validation—But the Hard Part Comes Next Dividend Stocks May Be the Quiet Rotation Trade Investors Are Missing Now Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Verizon May Be an AI Infrastructure Stock Hiding in Plain Sight Want to see what other hedge funds are holding PHM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for PulteGroup, Inc. (NYSE:PHM – Free Report).
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PulteGroup, Inc. (NYSE:PHM – Get Free Report) has received an average recommendation of “Moderate Buy” from the seventeen research firms that are covering the company, MarketBeat reports. Seven equities research analysts have rated the stock with a hold recommendation and ten have issued a buy recommendation on the company. The average 1 year price objective among brokers that have issued a report on the stock in the last year is $143.1429.
Several research analysts have weighed in on the stock. Seaport Research Partners reissued a “sell” rating and issued a $100.00 price target (down from $155.00) on shares of PulteGroup in a report on Tuesday, April 7th. Zacks Research upgraded PulteGroup from a “strong sell” rating to a “hold” rating in a report on Monday, April 13th. Weiss Ratings raised PulteGroup from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday. Truist Financial lowered their target price on PulteGroup from $170.00 to $150.00 and set a “buy” rating on the stock in a research note on Thursday, April 16th. Finally, Royal Bank Of Canada lifted their price target on PulteGroup from $115.00 to $116.00 and gave the stock a “sector perform” rating in a report on Thursday.
Read Our Latest Stock Report on PulteGroup
PulteGroup Price Performance Shares of PHM opened at $128.85 on Thursday. The company’s 50-day moving average is $124.12 and its 200-day moving average is $125.25. The company has a debt-to-equity ratio of 0.14, a current ratio of 0.78 and a quick ratio of 0.94. The firm has a market capitalization of $24.15 billion, a PE ratio of 13.16, a PEG ratio of 1.63 and a beta of 1.18. PulteGroup has a fifty-two week low of $108.49 and a fifty-two week high of $144.49.
PulteGroup (NYSE:PHM – Get Free Report) last announced its earnings results on Wednesday, July 22nd. The construction company reported $2.48 EPS for the quarter, topping the consensus estimate of $2.36 by $0.12. PulteGroup had a net margin of 11.62% and a return on equity of 15.21%. The business had revenue of $3.98 billion during the quarter, compared to the consensus estimate of $3.94 billion. During the same quarter in the previous year, the firm posted $3.03 EPS. PulteGroup’s revenue was down 9.6% compared to the same quarter last year. Equities analysts forecast that PulteGroup will post 10.08 EPS for the current year.
PulteGroup declared that its board has authorized a stock repurchase program on Thursday, April 23rd that permits the company to buyback $1.50 billion in outstanding shares. This buyback authorization permits the construction company to reacquire up to 6.1% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.
PulteGroup Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Tuesday, June 16th were given a dividend of $0.26 per share. The ex-dividend date was Tuesday, June 16th. This represents a $1.04 annualized dividend and a yield of 0.8%. PulteGroup’s dividend payout ratio (DPR) is presently 10.62%.
Key Headlines Impacting PulteGroup Here are the key news stories impacting PulteGroup this week:
Positive Sentiment: PulteGroup continues to benefit from a solid backlog, growing net new orders, and a conservative balance sheet, which supports visibility into future revenue and cash flow. PulteGroup Offers A Stable Home For Real Estate Investors Positive Sentiment: The company’s Q2 earnings beat, ongoing share buybacks, and guidance for about $1 billion in operating cash flow help offset some of the near-term housing market pressure. Is PHM Stock Attractive After Its Q2 Earnings Beat and Margin Slide? Positive Sentiment: Management is using community growth and tighter spec inventory to support sales, suggesting PHM is actively managing through affordability challenges better than some peers. How PulteGroup Is Balancing Orders, Inventory and Margin Pressure Neutral Sentiment: Several recent articles and earnings-call summaries frame the quarter as a balance of growth and pressure, reinforcing a wait-and-see stance rather than a clear re-rating catalyst. PulteGroup Inc (PHM) Q2 2026 Earnings Call Highlights Negative Sentiment: Margin pressure, weaker fundamentals, and falling estimates are limiting upside, which helps explain why the stock has not fully rewarded the earnings beat. Is PHM Stock Attractive After Its Q2 Earnings Beat and Margin Slide? Negative Sentiment: Recent reporting noted the shares declined despite the earnings beat, reflecting investor concern that the housing cycle remains pressured and that profitability may stay under strain. PulteGroup shares decline despite second-quarter earnings beat Insiders Place Their Bets In related news, Director Lila Snyder sold 3,339 shares of the company’s stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $117.18, for a total value of $391,264.02. Following the transaction, the director directly owned 3,540 shares in the company, valued at approximately $414,817.20. This represents a 48.54% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, COO Matthew William Koart sold 7,457 shares of the firm’s stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $120.00, for a total transaction of $894,840.00. Following the transaction, the chief operating officer directly owned 28,100 shares in the company, valued at approximately $3,372,000. This represents a 20.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.75% of the stock is currently owned by company insiders.
Institutional Trading of PulteGroup Institutional investors have recently bought and sold shares of the business. Golden State Wealth Management LLC raised its position in shares of PulteGroup by 18.3% in the fourth quarter. Golden State Wealth Management LLC now owns 484 shares of the construction company’s stock valued at $57,000 after buying an additional 75 shares in the last quarter. Evergreen Capital Management LLC boosted its stake in shares of PulteGroup by 2.8% in the second quarter. Evergreen Capital Management LLC now owns 2,875 shares of the construction company’s stock valued at $304,000 after buying an additional 78 shares during the period. CoreCap Advisors LLC grew its position in PulteGroup by 1.1% during the second quarter. CoreCap Advisors LLC now owns 7,372 shares of the construction company’s stock worth $1,012,000 after buying an additional 79 shares in the last quarter. Stephens Inc. AR grew its position in PulteGroup by 3.5% during the fourth quarter. Stephens Inc. AR now owns 2,350 shares of the construction company’s stock worth $276,000 after buying an additional 80 shares in the last quarter. Finally, Perigon Wealth Management LLC increased its stake in PulteGroup by 3.6% during the 4th quarter. Perigon Wealth Management LLC now owns 2,672 shares of the construction company’s stock worth $313,000 after acquiring an additional 92 shares during the period. Institutional investors own 89.90% of the company’s stock.
About PulteGroup (Get Free Report)
PulteGroup, Inc (NYSE: PHM) is a U.S.-based residential homebuilder that designs, constructs and sells single-family homes and develops master-planned communities. The company operates multiple national and regional brands that target different buyer segments, including first-time buyers, move-up buyers and active-adult customers. Its operations encompass land acquisition and development, home design and construction, community amenities and ongoing customer service and warranty programs.
PulteGroup markets homes under several well-known brands, such as Pulte Homes, Centex and Del Webb, among others, offering a range of product types from entry-level detached homes to larger, higher-end residences and age-restricted active-adult communities.
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Key Takeaways PHM beat Q2 earnings and revenue estimates, though both declined from the prior year.PHM's $131 target offers modest upside as shares trade above key homebuilding valuation benchmarks.Buybacks and low leverage support PHM, but 2026 earnings and revenues are projected to fall. PulteGroup, Inc. (PHM - Free Report) gave investors a mixed second-quarter readout. Earnings and revenues topped expectations, but both fell from the prior year as closings, pricing and margins weakened.
The investment case now rests on balance. PHM offers capital returns, a solid balance sheet and modest price-target upside, but growth estimates and margins remain under pressure.
PHM Beats Estimates Despite Lower EarningsAdjusted earnings were $2.48 per share, topping the Zacks Consensus Estimate of $2.38 by 4.2%. Total revenues of $3.983 billion edged past the consensus mark of $3.980 billion by 0.1%.
The beat did not erase the year-over-year decline. Earnings fell 18.2% from $3.03 per share, while total revenues decreased 9.6% as lower closings and softer average selling prices weighed on results.
PulteGroup’s Valuation Offers Limited UpsidePHM’s $131 price target compares with a reported share price of $124.67, leaving only modest potential appreciation. That limits the valuation argument, even though the company continues to generate orders and return capital.
The stock traded at 11.85 times forward earnings, above the sub-industry’s 10.88 multiple and PHM’s five-year median of 8.33. It still traded well below the broader construction sector and the S&P 500, keeping the valuation picture mixed rather than clearly cheap.
D.R. Horton (DHI - Free Report) and Lennar Corporation (LEN - Free Report) remain relevant comparisons because both operate as national homebuilders facing similar affordability and margin pressures. D.R. Horton describes itself as the largest U.S. homebuilder by volume, while Lennar is commonly tracked alongside DHI and PHM in homebuilding comparisons.
PHM’s Forecasts Point to a Difficult 2026Current projections call for 2026 revenues of $16.404 billion, down from $17.312 billion in 2025. Expected earnings are $10.01 per share, compared with $11.44 in 2025.
Estimates point to improvement in 2027, with revenues projected at $17.045 billion and earnings at $11.09 per share. The timing and durability of that recovery are central to whether PHM’s valuation can become more appealing.
PulteGroup Returns Capital While Funding GrowthPHM repurchased 3.1 million shares for $373 million in the second quarter. First-half repurchases totaled 5.5 million shares, or roughly 3% of outstanding shares, for $681 million.
The company maintained a quarterly dividend of 26 cents per share and had $1.8 billion remaining under its repurchase authorization. It is also funding land investment, though first-half operating cash flow fell to $176.8 million from $421.7 million as inventories increased.
PHM’s Balance Sheet Limits Financial RiskPulteGroup ended June with $1.38 billion in cash, cash equivalents and restricted cash. Its debt-to-capital ratio was 12.3%, while net debt-to-capital was 3.3%, giving the company financial flexibility in a softer housing cycle.
The land pipeline also supports flexibility. PHM controlled about 228,000 lots, with 55% held through option agreements, limiting upfront ownership exposure when demand is uncertain.
PHM’s Scores Support a Selective ApproachThe bottom line is that PHM looks more balanced than broadly attractive. The earnings beat, buybacks and balance sheet help, but declining estimates and margin compression keep the risk-reward selective.
PHM currently carries a Zacks Rank #2 (Buy), with a Value Score of B, Momentum Score of B and VGM Score of B. Those grades provide positive near-term signals, while the Growth Score of D reflects weaker projected earnings and sales trends. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock may suit investors focused on disciplined capital returns and balance-sheet strength. Investors prioritizing immediate growth may need clearer evidence that earnings, revenues and margins are stabilizing.
Key Takeaways PulteGroup's wider community base lifted second-quarter net new orders 6.4% to 7,536 homes.Build-to-order homes rose to 45% of orders as PulteGroup cut spec homes in production 13%.PulteGroup's gross margin fell 200 basis points to 25.0% as incentives reached 10.4% of prices. PulteGroup (PHM - Free Report) is widening its community base to support orders across first-time, move-up and active-adult buyers. That broader reach is helping offset ofter affordability conditions.
The trade-off is clear. Closings, average selling prices and margins remain under pressure, making inventory discipline central to PHM’s near-term execution.
PulteGroup’s Community Growth Supports New OrdersSecond-quarter net new orders increased 6.4% year over year to 7,536 homes. The gain came as average community count rose 8% to 1,074.
Absorption slipped 1% to 2.3 homes per community per month. That suggests community expansion, rather than stronger demand at each location, remains the main volume driver.
PHM Shifts Back Toward Build-to-Order HomesPulteGroup is moving back toward its long-term mix of 60% build-to-order homes and 40% spec homes. Build-to-order properties represented 45% of second-quarter orders, up from 40% a year earlier.
The shift is helping reduce inventory risk. Spec homes in production declined 13% to 6,638, while finished spec inventory fell to about 1.3 homes per community.
PulteGroup Reaches Multiple Buyer SegmentsPulteGroup’s second-quarter orders were balanced across buyer groups: 39% first-time, 36% move-up and 25% active adult. That mix reduces reliance on one customer category.
Orders increased across all three groups. Active-adult orders rose 12%, while first-time and move-up orders advanced 5% and 4%, respectively.
PHM Uses Geographic Scale to Manage VolatilityOrders rose in every region except the West, led by 19% growth in Florida. Demand was also favorable in several Midwest markets, Greenville and the Coastal Carolinas.
This geographic breadth gives PulteGroup room to adjust incentives, inventory and capital by local market. Peers such as D.R. Horton (DHI - Free Report) and Lennar Corporation (LEN - Free Report) face similar affordability and pricing trade-offs, making local scale an important competitive lever across the homebuilding group.
PulteGroup Faces Persistent Margin PressureHome sale gross margin declined 200 basis points year over year to 25.0%. Incentives equaled 10.4% of gross selling prices, up from 8.7% a year earlier.
Lower closings and a softer average selling price weighed on revenues, while selling, general and administrative expenses rose as a percentage of home sale revenues. Higher lot costs also remain a risk, even if lower construction costs provide some offset.
PHM’s Ratings Reflect Balanced Near-Term SignalsThe bottom line is that PulteGroup is generating orders through broader market coverage and tighter inventory control, but affordability pressure is still limiting operating leverage. The setup is resilient, not risk-free.
PHM currently carries a Zacks Rank #2 (Buy), indicating a favorable short-term earnings-revision signal. The stock also has a Value Score of B, Momentum Score of B and VGM Score of B, which support a constructive near-term profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Growth Score of D keeps the outlook mixed. Projected declines in earnings and sales suggest investors should balance PHM’s order resilience against ongoing margin and demand pressure.
PulteGroup, Inc. (PHM) Q2 2026 Earnings Call July 22, 2026 8:30 AM EDT
Company Participants
James Zeumer - Vice President of Investor Relations
Ryan Marshall - President, CEO & Director
James Ossowski - Executive VP & CFO
Conference Call Participants
John Lovallo - UBS Investment Bank, Research Division
Richard Reid - Wells Fargo Securities, LLC, Research Division
Matthew Bouley - Barclays Bank PLC, Research Division
Stephen Kim - Evercore ISI Institutional Equities, Research Division
Alan Ratner - Zelman & Associates LLC
Michael Dahl - RBC Capital Markets, Research Division
Anthony Pettinari - Citigroup Inc., Research Division
Trevor Allinson - Wolfe Research, LLC
Jonathan Bettenhausen - Truist Securities, Inc., Research Division
Rafe Jadrosich - BofA Securities, Research Division
Susan Maklari - Goldman Sachs Group, Inc., Research Division
Kenneth Zener - Seaport Research Partners
Ryan Gilbert - BTIG, LLC, Research Division
Presentation
Operator
Thank you for standing by. My name is Jordan, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the PulteGroup, Inc. Q2 2026 Earnings Conference Call. [Operator Instructions]
Thank you. I would now like to turn the call over to Jim Zeumer. Please go ahead.
James Zeumer
Vice President of Investor Relations
Thank you, Jordan. Good morning. I want to welcome everyone to today's call to review PulteGroup's operating and financial results for our second quarter ended June 30, 2026. Joining me on today's call are Ryan Marshall, President and CEO; Jim Ossowski, Executive Vice President and CFO; and David Carrier, Senior VP, Finance.
In advance of this call, a copy of our Q2 earnings release and this morning's webcast presentation have been posted to our corporate website at pultegroup.com. We will also post an audio replay of this call later today. I would highlight that today's presentation includes forward-looking statements about the company's expected future performance. Actual results could differ materially from those suggested by our comments
Key Takeaways PulteGroup's Q2 earnings beat estimates 4.2%, but declined 18.2% year over year to $2.48 per share.New orders rose 6.4% and backlog units grew 1.7%, despite lower home deliveries and average selling prices.Home sale gross margin fell 200 bps to 25%, while first-half buybacks reached $681.2 million. PulteGroup, Inc. (PHM - Free Report) reported better-than-expected second-quarter 2026 results, with adjusted earnings and total revenues topping the Zacks Consensus Estimate, but declining year over year.
The quarterly results reflect reduced home-closing volumes, softer average selling prices (ASP) and margin compression. Ongoing softness in the housing market because of weaker consumer confidence and ongoing affordability challenges due to high mortgage rates hurt the top-line growth.
Shares of this Georgia-based homebuilding and financial services company inched up 1% during today’s pre-market trading session, following the earnings release.
Inside PulteGroup’s Q2 HeadlinesQuarterly earnings were $2.48 per share, beating the Zacks Consensus Estimate of $2.38 by 4.2%. Earnings declined 18.2% from $3.03 in the prior-year quarter.
Total revenues (Homebuilding & Financial Services) of $3.983 billion edged past the consensus mark of $3.980 billion by 0.1% but fell 9.6% year over year.
PulteGroup’s Homebuilding HighlightsHomebuilding segment’s revenues decreased 9.7% year over year to $3.89 billion. Home sale revenues fell 10.8% to $3.81 billion, reflecting weaker delivery volumes and lower average pricing. Land sale and other revenues increased to $78.9 million from $34.6 million.
The number of homes closed declined 8.4% year over year to 6,997 units. Deliveries decreased across the Northeast, Midwest, Texas and West regions, while closings in the Southeast and Florida remained relatively stable. The ASP of homes delivered fell 2.7% to $544,000 from $559,000.
Net new orders increased 6.4% year over year to 7,536 homes. Order growth was recorded across all buyer groups, supported by an 8% increase in average community count to 1,074. The dollar value of net new orders rose 5.1% to $4.08 billion.
PulteGroup ended the quarter with a backlog of 10,966 homes, up 1.7% from the prior-year level. Backlog units increased in the Northeast, Florida, Midwest and Texas, while the Southeast and West reported declines. The value of homes in backlog slipped 0.6% to $6.80 billion. The divergence between higher units and lower value indicates that the average value of homes in backlog declined year over year, consistent with the company’s broader pricing pressure.
Home sale gross margin contracted 200 basis points (bps) year over year to 25%. However, the metric improved 60 basis points sequentially from the first quarter of 2026, indicating some near-term stabilization in profitability.
Selling, general and administrative (SG&A) expenses declined to $383 million from $390 million. However, as a percentage of home sale revenues, SG&A expenses increased 100 bps to 10.1%, as the lower revenue base reduced operating leverage.
PulteGroup’s Financial Services DetailsFinancial Services revenues declined 4.2% to $96.9 million. Overall, the revenue mix reflected continued housing-market pressure as affordability constraints, volatile mortgage rates and economic uncertainty affected buyer activity.
Mortgage origination volume decreased to 4,629 loans from 4,984, while origination principal fell to $1.98 billion from $2.16 billion. The mortgage capture rate improved modestly to 85.2% from 84.8%.
PHM’s Liquidity and Buybacks Stay in FocusPulteGroup ended the quarter with $1.38 billion in cash, cash equivalents and restricted cash. Notes payable totaled $1.82 billion, resulting in a debt-to-capital ratio of 12.3% and a net debt-to-capital ratio of 3.3%.
Operating cash flow for the first six months of 2026 declined 58.1% year over year to $176.8 million, partly reflecting an $807.3 million increase in inventories. During the second quarter, PHM repurchased 3.1 million shares for $373 million. First-half repurchases totaled $681.2 million, representing 5.5 million shares.
PHM’s Zacks Rank & Peer ReleasesPulteGroup currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
D.R. Horton, Inc. (DHI - Free Report) reported third-quarter fiscal 2026 earnings of $3.20 per share, beating the Zacks Consensus Estimate of $2.99 by 7%. Revenues of $9.23 billion also surpassed the consensus mark of $9.19 billion by 0.5%. On a year-over-year basis, earnings declined 4.8%, while revenues increased marginally.
The earnings and revenue beat was driven by higher home-closing volumes, resilient home sales margins, disciplined management of pricing and incentives, and contributions from the Rental, Forestar and Financial Services businesses. However, lower profitability, elevated incentives and cautious consumer demand continued to weigh on results. D.R. Horton now expects fiscal 2026 consolidated revenues of $32.5-$33 billion, down from $33.5-$34.5 billion expected earlier.
Lennar Corporation (LEN - Free Report) reported mixed second-quarter fiscal 2026 results, with adjusted earnings topping the Zacks Consensus Estimate while revenues missed the same. Year over year, both metrics declined, given ongoing softness in housing demand and a lower ASP for homes delivered.
Homebuilding revenues declined 2% year over year to $7.62 billion from $7.84 billion, with home deliveries increasing 2% to 20,519 homes from 20,131 homes a year ago. Backlog at quarter-end increased to 16,818 homes from 15,538 homes. For the third quarter of fiscal 2026, Lennar expects home deliveries in the range of 20,500-21,500 and new orders between 21,000 and 22,000 homes. Gross margin on home sales is expected to be approximately 16%.
A Stock to ConsiderHere is a stock from the Zacks Construction sector, which according to our model, has the right combination of elements to post an earnings beat.
CRH plc (CRH - Free Report) has an Earnings ESP of +4.08% and a Zacks Rank of 3.
CRH’s earnings beat estimates in two of the last four quarters, missed on one occasion and met on the remaining occasion, the average surprise being 0.7%. The company’s earnings for the second quarter of 2026 are expected to inch up 1% year over year.
The Lock-In Effect Is Real—These 3 Homebuilders Are Betting on ItPulteGroup NYSE: PHM reported higher second-quarter orders and reaffirmed its full-year delivery and margin outlook, even as revenue and earnings declined from a year earlier amid fewer closings and a lower average sales price.
On the company’s earnings call for the quarter ended June 30, 2026, President and CEO Ryan Marshall said he was “extremely pleased” with PulteGroup’s operating and financial results for both the quarter and the first half of the year. He pointed to order growth across all buyer groups, reduced incentives from the first quarter and continued progress shifting the business back toward build-to-order sales.
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Netflix, Pulte, and Mobileye Are Buying Their Own Dips—Should You?Second-quarter net new orders rose 6% year over year to 7,536 homes, while the value of orders increased 5% to $4.1 billion, according to Executive Vice President and CFO Jim Ossowski. Orders increased across first-time, move-up and active adult buyer segments, rising 5%, 4% and 12%, respectively.
Orders Rise, While Revenue and EPS Decline PulteGroup generated home sale revenue of $3.8 billion in the second quarter, down from $4.3 billion in the prior-year period. Ossowski said the decline reflected an 8% decrease in closings to 6,997 homes and a 3% decrease in average sales price to $544,000.
Homebuilder Earnings: D.R. Horton Sticks Out as Pulte & NVR Sales TankOssowski said mix was a meaningful factor in the lower average selling price, as the company had fewer closings from its Northeast and West operations, which he described as PulteGroup’s two highest-priced operating geographies.
The company reported pretax income of $622 million and net income of $472 million, or $2.48 per share. That compared with net income of $608 million, or $3.03 per share, in the second quarter of 2025. Diluted shares outstanding fell by 10 million shares, or 5%, from the prior year to 191 million, and the company repurchased 3.1 million shares for $373 million during the quarter.
PulteGroup’s financial services operations generated pretax income of $37 million, compared with $43 million a year earlier. Ossowski said the year-over-year decline was primarily due to lower closing volumes in the homebuilding business. The company’s mortgage capture rate was 85%, comparable to the second quarter of 2025.
Margins Hold Near 25% as Incentives Ease Sequentially PulteGroup reported a homebuilding gross margin of 25% for the quarter, up 60 basis points from the first quarter. For the first half of the year, homebuilding gross margin was 24.7%.
Marshall said the company’s margins reflect a disciplined land underwriting process, diversification across markets and buyer groups, and a balanced approach to price and pace. He said PulteGroup’s gross margins are “in some instances” several hundred basis points higher than those of peers.
Ossowski said second-quarter incentives were 10.4%, down 50 basis points from the first quarter. He attributed the sequential margin improvement to a greater mix of closings from higher-margin Florida markets, lower-than-anticipated discounts on homes sold and closed in the quarter, and lower build costs.
House costs were just under $75 per square foot in the quarter, down 5% from a year earlier and about 1% from the first quarter. Ossowski said the company expects to lose the tailwind from lower lumber costs as the year progresses, though it still expects year-over-year house costs to be slightly lower than in 2025.
In response to analyst questions, Marshall said incentives remain elevated because of affordability challenges and a competitive market. He said the company had previously identified the first quarter as the “high watermark” for incentives, but cautioned that the company is not expecting a sharp improvement from current levels.
Build-to-Order Shift Continues Marshall said PulteGroup continued to execute its transition back to build-to-order homes, with build-to-order sales representing 45% of new orders in the second quarter. Year to date, build-to-order sign-ups rose 500 basis points as a share of total orders compared with the first six months of 2025.
Ossowski said the company’s long-term goal is for orders to be about 60% build-to-order and 40% spec. Marshall said during the question-and-answer session that PulteGroup likely reaches that 60% target sometime next year.
The company ended the quarter with 14,980 homes in production, of which 6,638, or 44%, were spec homes. PulteGroup also had about 1,400 finished spec homes, equal to 1.3 finished specs per community, down from 1.9 a year earlier. Marshall said the company has effectively reached the spec inventory level it wants, though some work remains in select communities.
Marshall said build cycles have recovered from the supply chain disruptions that followed COVID, with cycle times down to 100 working days or fewer in some markets. He said that gives PulteGroup the ability to manage starts while still meeting production goals.
Regional Trends and Buyer Mix Management described overall demand as following typical seasonal patterns during the quarter, with sales and absorption paces easing month to month. Marshall said consumer activity was affected at times by global tensions, macroeconomic uncertainty and movements in interest rates.
Ossowski said net new orders increased in every region except the West, where consumer demand has been slower to recover. Florida remained a standout, with second-quarter orders up 19% year over year. Marshall also cited strength in Midwest markets such as Columbus, Cleveland and Chicago, as well as Greenville and Coastal Carolina. He said Dallas and Houston showed year-over-year order improvement, though he said it was too early to “declare victory” in Texas.
Second-quarter net new orders were 39% first-time buyers, 36% move-up buyers and 25% active adult buyers. Ossowski said active adult orders benefited from the opening of new Explore by Del Webb communities in Tampa and Columbus. Marshall said the company now has Explore by Del Webb communities open in Southern California, Columbus and Tampa, with another planned east of Park City, Utah.
Guidance Reaffirmed, Land Investment Continues PulteGroup expects to close between 7,000 and 7,400 homes in the third quarter and reaffirmed its full-year 2026 closing guidance of 28,500 to 29,000 homes. The company expects average selling prices of $550,000 to $560,000 in both the third and fourth quarters.
Ossowski said PulteGroup expects third-quarter gross margin of 24.5% to 25.0% and reaffirmed the same range for the full year. The company also maintained full-year SG&A guidance of 9.5% to 9.7% of home sale revenue and an expected tax rate of 24.5%, excluding discrete tax events.
PulteGroup invested $1.4 billion in land acquisition and development during the quarter, bringing year-to-date land spend to $2.7 billion. Ossowski said the company remains on track to invest about $5.4 billion in land in 2026. It ended the quarter with 228,000 lots under control, 55% of which were controlled by option.
The company ended the quarter with $1.4 billion in cash and a debt-to-capital ratio of 12.3%. Ossowski said PulteGroup continues to expect operating cash flow of about $1 billion for 2026.
Marshall also addressed industry consolidation, saying PulteGroup’s first question on any acquisition is whether it would make the company “better, not just bigger.” He said the company prefers smaller tuck-in acquisitions that build local market scale and views M&A primarily as another way to acquire land.
About PulteGroup (NYSE:PHM)PulteGroup, Inc NYSE: PHM is a U.S.-based residential homebuilder that designs, constructs and sells single-family homes and develops master-planned communities. The company operates multiple national and regional brands that target different buyer segments, including first-time buyers, move-up buyers and active-adult customers. Its operations encompass land acquisition and development, home design and construction, community amenities and ongoing customer service and warranty programs.
PulteGroup markets homes under several well-known brands, such as Pulte Homes, Centex and Del Webb, among others, offering a range of product types from entry-level detached homes to larger, higher-end residences and age-restricted active-adult communities.
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PulteGroup (PHM - Free Report) reported $3.98 billion in revenue for the quarter ended June 2026, representing a year-over-year decline of 9.6%. EPS of $2.48 for the same period compares to $3.03 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $3.98 billion, representing a surprise of +0.06%. The company delivered an EPS surprise of +4.2%, with the consensus EPS estimate being $2.38.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how PulteGroup performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Average selling price - Total: $544.00 versus the four-analyst average estimate of $546.26.Net new orders - units - Total: 7,536 versus the four-analyst average estimate of 7,371.Closings (units) - Total: 6,997 versus 6,987 estimated by four analysts on average.Unit backlog - Total: 10,966 compared to the 10,811 average estimate based on four analysts.Backlog dollars - Total: $6.8 billion compared to the $6.76 billion average estimate based on two analysts.Homebuilding Revenues- Home sale revenues: $3.81 billion versus the four-analyst average estimate of $3.93 billion. The reported number represents a year-over-year change of -10.8%.Revenues- Financial Services: $96.94 million versus the four-analyst average estimate of $101.06 million. The reported number represents a year-over-year change of -4.2%.Homebuilding Revenues: $3.89 billion versus $3.96 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -9.7% change.Homebuilding Revenues- Land sale and other revenues: $78.92 million versus the three-analyst average estimate of $43.16 million. The reported number represents a year-over-year change of +128%.Income / (loss) before income taxes- Financial Services: $37.38 million versus the two-analyst average estimate of $44.86 million.View all Key Company Metrics for PulteGroup here>>>
Shares of PulteGroup have returned -1.8% over the past month versus the Zacks S&P 500 composite's +0.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
ATLANTA--(BUSINESS WIRE)--PulteGroup, Inc. (NYSE: PHM) announced today financial results for its second quarter ended June 30, 2026. For the quarter, the Company reported net income of $472 million, or $2.48 per share. In the prior year period, the Company reported net income of $608 million, or $3.03 per share. “We continue to capture benefits from our return-focused operating model and business platform that is well diversified across markets and buyer groups,” said Ryan Marshall, President a.
PulteGroup (PHM - Free Report) came out with quarterly earnings of $2.48 per share, beating the Zacks Consensus Estimate of $2.38 per share. This compares to earnings of $3.03 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.20%. A quarter ago, it was expected that this homebuilder would post earnings of $1.8 per share when it actually produced earnings of $1.79, delivering a surprise of -0.56%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
PulteGroup, which belongs to the Zacks Building Products - Home Builders industry, posted revenues of $3.98 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.06%. This compares to year-ago revenues of $4.4 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
PulteGroup shares have added about 6% since the beginning of the year versus the S&P 500's gain of 9.7%.
What's Next for PulteGroup?While PulteGroup has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for PulteGroup was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.70 on $4.33 billion in revenues for the coming quarter and $9.95 on $16.4 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Home Builders is currently in the bottom 17% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, M/I Homes (MHO - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on July 29.
This homebuilder is expected to post quarterly earnings of $3.17 per share in its upcoming report, which represents a year-over-year change of -28.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
M/I Homes' revenues are expected to be $1.18 billion, up 1.8% from the year-ago quarter.
California Public Employees Retirement System boosted its position in PulteGroup, Inc. (NYSE:PHM – Free Report) by 4.1% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund owned 420,701 shares of the construction company’s stock after purchasing an additional 16,536 shares during the period. California Public Employees Retirement System owned about 0.22% of PulteGroup worth $49,479,000 as of its most recent SEC filing.
A number of other large investors have also made changes to their positions in PHM. Focus Partners Wealth increased its position in shares of PulteGroup by 20.5% during the 1st quarter. Focus Partners Wealth now owns 12,517 shares of the construction company’s stock valued at $1,287,000 after purchasing an additional 2,128 shares during the last quarter. EverSource Wealth Advisors LLC boosted its holdings in shares of PulteGroup by 197.1% in the second quarter. EverSource Wealth Advisors LLC now owns 1,212 shares of the construction company’s stock worth $128,000 after buying an additional 804 shares during the last quarter. Guggenheim Capital LLC grew its position in PulteGroup by 12.9% during the second quarter. Guggenheim Capital LLC now owns 8,519 shares of the construction company’s stock valued at $898,000 after buying an additional 975 shares during the period. Baird Financial Group Inc. grew its position in PulteGroup by 8.0% during the second quarter. Baird Financial Group Inc. now owns 29,060 shares of the construction company’s stock valued at $3,065,000 after buying an additional 2,164 shares during the period. Finally, Cerity Partners LLC grew its position in PulteGroup by 17.6% during the second quarter. Cerity Partners LLC now owns 41,677 shares of the construction company’s stock valued at $4,395,000 after buying an additional 6,240 shares during the period. 89.90% of the stock is currently owned by institutional investors.
PulteGroup Trading Down 2.2% Shares of PulteGroup stock opened at $123.27 on Tuesday. PulteGroup, Inc. has a fifty-two week low of $108.32 and a fifty-two week high of $144.49. The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.94 and a current ratio of 0.94. The company has a market capitalization of $23.48 billion, a P/E ratio of 11.92, a P/E/G ratio of 1.61 and a beta of 1.18. The company has a fifty day moving average of $123.07 and a 200 day moving average of $125.07.
PulteGroup (NYSE:PHM – Get Free Report) last posted its quarterly earnings results on Thursday, April 23rd. The construction company reported $1.79 EPS for the quarter, missing analysts’ consensus estimates of $1.80 by ($0.01). PulteGroup had a net margin of 12.14% and a return on equity of 16.41%. The business had revenue of $3.41 billion for the quarter, compared to the consensus estimate of $3.40 billion. During the same period in the prior year, the business earned $2.57 earnings per share. PulteGroup’s revenue was down 12.4% compared to the same quarter last year. On average, sell-side analysts anticipate that PulteGroup, Inc. will post 9.95 earnings per share for the current fiscal year.
PulteGroup Announces Dividend The firm also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Investors of record on Tuesday, June 16th were paid a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend was Tuesday, June 16th. PulteGroup’s dividend payout ratio (DPR) is 10.06%.
PulteGroup declared that its board has authorized a stock buyback plan on Thursday, April 23rd that authorizes the company to buyback $1.50 billion in shares. This buyback authorization authorizes the construction company to purchase up to 6.1% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its stock is undervalued.
Analyst Ratings Changes Several research firms have weighed in on PHM. Weiss Ratings downgraded shares of PulteGroup from a “buy (b-)” rating to a “hold (c)” rating in a research report on Monday, April 27th. Truist Financial reduced their price objective on PulteGroup from $170.00 to $150.00 and set a “buy” rating for the company in a research note on Thursday, April 16th. Seaport Research Partners reaffirmed a “sell” rating and issued a $100.00 target price (down from $155.00) on shares of PulteGroup in a report on Tuesday, April 7th. Citigroup raised their target price on PulteGroup from $136.00 to $138.00 and gave the stock a “neutral” rating in a report on Friday, April 24th. Finally, Oppenheimer reiterated an “outperform” rating on shares of PulteGroup in a research report on Tuesday, May 26th. Ten analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $142.21.
Get Our Latest Stock Analysis on PulteGroup
Insider Activity at PulteGroup In other PulteGroup news, Director Lila Snyder sold 3,339 shares of the stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $117.18, for a total transaction of $391,264.02. Following the completion of the sale, the director directly owned 3,540 shares of the company’s stock, valued at $414,817.20. This trade represents a 48.54% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, COO Matthew William Koart sold 7,457 shares of PulteGroup stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $120.00, for a total transaction of $894,840.00. Following the sale, the chief operating officer owned 28,100 shares in the company, valued at approximately $3,372,000. The trade was a 20.97% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.75% of the stock is currently owned by company insiders.
PulteGroup Company Profile (Free Report)
PulteGroup, Inc (NYSE: PHM) is a U.S.-based residential homebuilder that designs, constructs and sells single-family homes and develops master-planned communities. The company operates multiple national and regional brands that target different buyer segments, including first-time buyers, move-up buyers and active-adult customers. Its operations encompass land acquisition and development, home design and construction, community amenities and ongoing customer service and warranty programs.
PulteGroup markets homes under several well-known brands, such as Pulte Homes, Centex and Del Webb, among others, offering a range of product types from entry-level detached homes to larger, higher-end residences and age-restricted active-adult communities.
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