Track market-moving stories before they get noisy

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.

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.

Click for the complete disclosure

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)--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.

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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.

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

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.

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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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.

Key Takeaways PulteGroup's Q2 EPS is estimated to be $2.38, down 21.5%, with revenues projected to fall 9.6%.Higher sequential closings and community growth may support PulteGroup despite affordability pressures.PulteGroup's gross margin is expected to be 24.2% as incentives, discounts and pricing pressure weigh. PulteGroup Inc. (PHM - Free Report) is scheduled to report its second-quarter 2026 results on July 22, before the opening bell.

In the last reported quarter, the company’s adjusted earnings per share (EPS) missed the Zacks Consensus Estimate by 0.6%, and revenues surpassed the same by 0.7%. On a year-over-year basis, adjusted EPS declined 30.4%, and revenues decreased 12.4% 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 2.6%.

Trend in PHM Stock’s Estimate RevisionThe Zacks Consensus Estimate for PHM’s second-quarter EPS has increased to $2.38 from $2.36 over the past 30 days. The estimated figure indicates a 21.5% decrease from the year-ago EPS of $3.03.

The consensus mark for total revenues is pegged at $3.98 billion, implying a 9.6% year-over-year decline.

Factors Likely to Have Shaped PulteGroup’s Q2 EarningsTopline: PulteGroup’s second-quarter revenues are likely to have been supported by higher expected closing volumes. Management guided for 6,700-7,100 home closings during the quarter, reflecting a sequential increase from the first quarter as homes already under construction progressed toward delivery. Continued growth in community count, projected at 3-5% year over year, and the company's sizable land pipeline are likely to have supported sales activity.

For the second quarter, our model predicts home closings to decline 8.6% year over year to 6,982 units. Segment-wise, for the second quarter, our model predicts overall Homebuilding revenues (which contributed 97.9% to total revenues in the first quarter of 2026) to decrease 10.2% year over year to $3.87 billion. Our model expects Financial Services revenues (which contributed 2.1% to total revenues in the first quarter) to grow 0.4% year over year to $101.5 million.

Demand trends were expected to remain relatively resilient despite elevated mortgage rates. The company continued to benefit from healthy demand among move-up and active-adult buyers, particularly in Florida, the Northeast and parts of the Southeast, while its strategic shift toward a higher build-to-order mix likely enhanced order quality and future revenue visibility. Management also noted that buyer traffic remained healthy and seasonal demand trends held up well despite macroeconomic and geopolitical uncertainty.

However, affordability constraints likely continued to weigh on first-time buyers, limiting broader demand. Elevated incentives remained necessary to stimulate sales in a competitive housing market, while average selling prices (ASPs) were guided to a range of $540,000-$550,000, suggesting continued pricing pressure. Regional weakness in parts of Texas and the West, together with cautious consumer sentiment tied to mortgage rates, may also have constrained top-line growth. Our model predicts the ASP of homes closed to decrease 2.1% year over year to $547,200.

Margins: Margins are expected to have remained under pressure during the quarter. Management projected home sale gross margin of 24.1-24.4%, indicating that the second quarter is likely to represent the low point of the year. Elevated incentives, competitive pricing and the closing of previously sold spec homes carrying heavier discounts are expected to have weighed on profitability.

Our model predicts homebuilding gross margin to be 24.2% for the quarter, down from the year-ago period level of 27%. We predict SG&A expenses (as a percentage of home sales revenues) to be 9.2%, up 10 basis points year over year.

Nevertheless, lower construction costs, supported by reduced lumber prices and procurement savings across several building materials, likely provided some relief. Continued efforts to reduce finished spec inventory and disciplined production management are likely to have supported operational efficiency. Share repurchases, which reduced the average diluted share count, were expected to have provided a modest boost to EPS even as lower financial services profitability and softer pricing weighed on the bottom line.

Orders & Backlogs: Our model expects PulteGroup’s net new orders to be up 1.4% year over year to 7,180 units in the second quarter. We expect the total backlog to decline 1.4% to 10,625 units, with the total backlog value dropping 2.4% year over year to $6.68 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 0.00%. 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 #3.

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.

Boise Cascade Company (BCC - Free Report) has an Earnings ESP of +6.50% and a Zacks Rank of 1 at present.

Boise Cascade’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 40.8%. The company’s earnings for the second quarter of 2026 are expected to decline 25% year over year.

Dycom Industries, Inc. (DY - Free Report) currently has an Earnings ESP of +0.47% and a Zacks Rank of 1.

Dycom’s earnings beat estimates in all the last four quarters, the average surprise being 25%. The company’s earnings for the second quarter of fiscal 2027 are expected to increase 39.3% year over year.

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.

Bank of New York Mellon Corp trimmed its holdings in PulteGroup, Inc. (NYSE:PHM – Free Report) by 6.4% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 1,469,176 shares of the construction company’s stock after selling 100,963 shares during the quarter. Bank of New York Mellon Corp owned 0.77% of PulteGroup worth $172,790,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also modified their holdings of PHM. Focus Partners Wealth lifted its holdings 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 worth $1,287,000 after acquiring an additional 2,128 shares during the period. EverSource Wealth Advisors LLC raised its position in 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 purchasing an additional 804 shares in the last quarter. Guggenheim Capital LLC raised its position in PulteGroup by 12.9% in the second quarter. Guggenheim Capital LLC now owns 8,519 shares of the construction company’s stock worth $898,000 after purchasing an additional 975 shares in the last quarter. Baird Financial Group Inc. lifted its stake in PulteGroup by 8.0% during the second quarter. Baird Financial Group Inc. now owns 29,060 shares of the construction company’s stock worth $3,065,000 after purchasing an additional 2,164 shares during the period. Finally, Cerity Partners LLC lifted its stake in PulteGroup by 17.6% during the second quarter. Cerity Partners LLC now owns 41,677 shares of the construction company’s stock worth $4,395,000 after purchasing an additional 6,240 shares during the period. Institutional investors and hedge funds own 89.90% of the company’s stock.

PulteGroup Stock Down 2.4% Shares of NYSE PHM opened at $125.92 on Friday. PulteGroup, Inc. has a 12-month low of $107.91 and a 12-month high of $144.49. The firm’s 50-day simple moving average is $122.92 and its 200 day simple moving average is $124.99. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 0.14. The company has a market cap of $23.99 billion, a price-to-earnings ratio of 12.18, a price-to-earnings-growth ratio of 1.61 and a beta of 1.18.

PulteGroup (NYSE:PHM – Get Free Report) last posted its quarterly earnings data on Thursday, April 23rd. The construction company reported $1.79 earnings per share for the quarter, missing the consensus estimate of $1.80 by ($0.01). PulteGroup had a net margin of 12.14% and a return on equity of 16.41%. The company had revenue of $3.41 billion during the quarter, compared to analyst estimates of $3.40 billion. During the same quarter in the previous year, the business posted $2.57 EPS. The company’s revenue was down 12.4% compared to the same quarter last year. On average, research analysts expect that PulteGroup, Inc. will post 9.95 earnings per share for the current fiscal year.

PulteGroup Announces Dividend The business also recently declared a quarterly dividend, which was paid on Thursday, July 2nd. Investors of record on Tuesday, June 16th were issued a $0.26 dividend. The ex-dividend date of this dividend was Tuesday, June 16th. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.8%. PulteGroup’s dividend payout ratio (DPR) is currently 10.06%.

PulteGroup declared that its board has initiated a stock repurchase plan on Thursday, April 23rd that permits the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization permits the construction company to reacquire up to 6.1% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

Wall Street Analyst Weigh In Several equities research analysts have recently weighed in on the company. UBS Group upped their price objective on PulteGroup from $159.00 to $162.00 and gave the company a “buy” rating in a research note on Friday, April 24th. Barclays raised their price objective on shares of PulteGroup from $112.00 to $123.00 and gave the stock an “equal weight” rating in a report on Tuesday. Evercore boosted their target price on PulteGroup from $146.00 to $151.00 and gave the stock an “outperform” rating in a report on Friday, April 24th. Oppenheimer reissued an “outperform” rating on shares of PulteGroup in a report on Tuesday, May 26th. Finally, Weiss Ratings lowered PulteGroup from a “buy (b-)” rating to a “hold (c)” rating in a research report on Monday, April 27th. Ten research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $142.21.

Get Our Latest Report on PulteGroup

Insider Buying and Selling In related news, Director Lila Snyder sold 3,339 shares of the business’s stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $117.18, for a total value of $391,264.02. Following the completion of the transaction, the director owned 3,540 shares in the company, valued at $414,817.20. The trade was a 48.54% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, COO Matthew William Koart sold 7,457 shares of the company’s stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $120.00, for a total value 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 position. The SEC filing for this sale provides additional information. Company insiders own 0.75% of the company’s stock.

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.

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In the latest trading session, PulteGroup (PHM - Free Report) closed at $129.92, marking a -1.11% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.45%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 1.16%.

Shares of the homebuilder have appreciated by 11.61% over the course of the past month, outperforming the Construction sector's gain of 2.14%, and the S&P 500's gain of 2.14%.

Market participants will be closely following the financial results of PulteGroup in its upcoming release. The company plans to announce its earnings on July 22, 2026. The company's earnings per share (EPS) are projected to be $2.38, reflecting a 21.45% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.98 billion, reflecting a 9.61% fall from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.95 per share and a revenue of $16.4 billion, indicating changes of -13.02% and -5.25%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 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, 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, the Zacks Consensus EPS estimate has moved 0.22% lower. PulteGroup presently features a Zacks Rank of #3 (Hold).

Investors should also note PulteGroup's current valuation metrics, including its Forward P/E ratio of 13.21. This expresses a discount compared to the average Forward P/E of 15.39 of its industry.

It is also worth noting that PHM currently has a PEG ratio of 1.67. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Building Products - Home Builders industry stood at 2.56 at the close of the market yesterday.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 214, which puts it in the bottom 14% of all 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

PulteGroup (PHM - Free Report) closed the most recent trading day at $132.59, moving -3.37% from the previous trading session. This move lagged the S&P 500's daily loss of 0.22%. Meanwhile, the Dow experienced a drop of 0.03%, and the technology-dominated Nasdaq saw a decrease of 0.66%.

Prior to today's trading, shares of the homebuilder had gained 16.51% outpaced the Construction sector's gain of 5.89% and the S&P 500's loss of 1.21%.

Investors will be eagerly watching for the performance of PulteGroup in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 22, 2026. It is anticipated that the company will report an EPS of $2.38, marking a 21.45% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $3.98 billion, indicating a 9.61% decline compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.95 per share and a revenue of $16.4 billion, representing changes of -13.02% and -5.25%, respectively, from the prior 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.22% decrease. PulteGroup presently features a Zacks Rank of #4 (Sell).

In the context of valuation, PulteGroup is at present trading with a Forward P/E ratio of 13.79. This denotes a discount relative to the industry average Forward P/E of 15.87.

It's also important to note that PHM currently trades at a PEG ratio of 1.75. 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. The average PEG ratio for the Building Products - Home Builders industry stood at 2.6 at the close of the market yesterday.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 221, putting it in the bottom 11% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.

On June 24, 2026, PulteGroup Inc (PHM) shares rose 7.2% to a current price of $135.71. This rise comes in the context of a 52-week high of $144.50 and a low of

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New findings suggest today's move-up buyers are redefining what it means to upgrade, balancing functionality, lifestyle fit and thoughtful design and the right amount of space for their needs.

ATLANTA--(BUSINESS WIRE)--For today's move-up homebuyers, the dream of a new home doesn't necessarily mean more space. It means better space.

According to a new national survey conducted by PulteGroup among 1,325 U.S. homeowners who recently purchased their next home, a majority (51%) bought a home the same size or smaller than their previous one. Yet regardless of whether they purchased a larger, similarly sized or smaller home, 78% said their new home met or exceeded expectations. The findings suggest today’s move-up buyers are increasingly prioritizing functionality, design and lifestyle alongside square footage when evaluating their next home.

Life-stage changes are also influencing purchasing decisions. Respondents cited a major life change, such as a growing family or aging parents (25%), as the top reason for purchasing a new home, followed by feeling that the timing was right to move (24%) and needing more space (22%).

While younger buyers were more likely to purchase larger homes, older buyers increasingly opted for homes that better matched their lifestyle needs, underscoring how life stage is shaping today’s definition of a move-up home.

Once the decision was made, many buyers moved quickly, with more than half (56%) saying they considered moving for less than a year before purchasing their next home.

More than half (51%) said the kitchen became the most valuable space after moving, ranking ahead of the living or family room (38%), garage (26%) and flex space (24%). When shopping for their next home, 37% of buyers said a modern or upgraded kitchen was a must-have feature, second only to location (55%).

The finding aligns with trends identified in PulteGroup's most recent Design Trends Forecast, which found homeowners increasingly gravitating toward oversized kitchen islands, integrated dining areas and open gathering spaces that bring people together. Flexible rooms, outdoor living spaces and layouts that support evolving family needs also continue gaining traction among today's buyers.

“For years, moving up was often associated primarily with buying more square footage,” said Angela Nuessle, national vice president of interior design at PulteGroup. "What we’re seeing today is that buyers are becoming more intentional about how they evaluate value in a home. They’re placing greater value on homes that support the way they live, whether that’s putting more emphasis on a well-designed kitchen, an increased desire for flexible spaces that meet the needs of evolving families or outdoor areas that extend everyday living."

These priorities appear to be paying off. Nearly half (47%) of respondents said their overall comfort and enjoyment of life improved after moving, while 26% said their ability to host and entertain improved. At a time when many homeowners are being thoughtful and carefully evaluating their next move, the findings of this latest survey suggest buyers are looking for the right combination of space, design and functionality to support their lifestyles and evolving needs.

PulteGroup conducted the online survey in May 2026 among 1,325 U.S. homeowners who recently purchased their next home.

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 Centex, Pulte Homes, 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.

More News From PulteGroup, Inc.

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INDIO, Calif.--(BUSINESS WIRE)--Del Webb recently celebrated a major milestone at Del Webb Desert Retreat with the official groundbreaking of the community’s future resort-style clubhouse, the social centerpiece of the new active-adult neighborhood.

Community leaders, project partners, and team members gathered to commemorate the occasion, including Norman Brown, PulteGroup’s Southern California Division President, and Elaine Holmes, Mayor of the City of Indio, who joined in the ceremonial shovel turn marking the next phase of development for the highly anticipated 55+ community.

Once complete, the clubhouse will offer residents a wide range of resort-style amenities designed to support active and social living, including a fitness center and aerobics studio, an indoor golf simulator, a ballroom, arts and billiards rooms, a food and beverage bar, and a resort-style pool and Jacuzzi.

“The clubhouse will be so much more than just an amenity center. It represents the heart of the community and the lifestyle our residents are looking for,” said Brown. "It's where neighbors will gather, friendships will form, and residents can enjoy the activities, experiences, and connections that make Del Webb communities so special."

Del Webb Desert Retreat marks Del Webb’s return to Indio and the Greater Palm Springs region, where the builder has delivered more than 10,000 homes throughout the Coachella Valley over its long history in the market.

Construction of the clubhouse is being supported by RCS Construction Management and Capital Building Services.

The gated community will feature homes ranging from approximately 1,444 to 2,722 square feet with flexible floor plans offering 2–3 bedrooms and 2–2.5 bathrooms. Pricing starts in the mid-$400,000s.

The clubhouse is expected to be completed in the summer of 2027.

About Del Webb

Del Webb is a national brand of PulteGroup, Inc. (NYSE: PHM). Del Webb is the pioneer in active adult communities and America’s leading builder of new consumer-inspired homes and communities for active adults ages 55+ who want to continue to explore, grow, and learn, socially, physically, and intellectually as they look forward to retirement. For more information on Del Webb, visit delwebb.com.

More News From PulteGroup, Inc.

In the latest close session, PulteGroup (PHM - Free Report) was up +1.56% at $124.76. The stock outpaced the S&P 500's daily loss of 0.57%. Meanwhile, the Dow experienced a rise of 0.64%, and the technology-dominated Nasdaq saw a decrease of 1.15%.

Shares of the homebuilder have appreciated by 9.89% over the course of the past month, outperforming the Construction sector's gain of 4.86%, and the S&P 500's gain of 2.14%.

Market participants will be closely following the financial results of PulteGroup in its upcoming release. The company plans to announce its earnings on July 22, 2026. In that report, analysts expect PulteGroup to post earnings of $2.43 per share. This would mark a year-over-year decline of 19.8%. In the meantime, our current consensus estimate forecasts the revenue to be $4.03 billion, indicating a 8.53% decline compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $10 per share and a revenue of $16.4 billion, signifying shifts of -12.59% and -5.29%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for PulteGroup. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. PulteGroup is currently a Zacks Rank #3 (Hold).

From a valuation perspective, PulteGroup is currently exchanging hands at a Forward P/E ratio of 12.29. This valuation marks a discount compared to its industry average Forward P/E of 14.67.

It is also worth noting that PHM currently has a PEG ratio of 1.56. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 1.94 based on yesterday's closing prices.

The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 228, positioning it in the bottom 7% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.

Concurrent Investment Advisors LLC lifted its stake in PulteGroup, Inc. (NYSE:PHM – Free Report) by 166.5% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 16,753 shares of the construction company’s stock after acquiring an additional 10,467 shares during the period. Concurrent Investment Advisors LLC’s holdings in PulteGroup were worth $1,964,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in PHM. Massachusetts Financial Services Co. MA bought a new stake in PulteGroup during the third quarter valued at $315,883,000. AGF Management Ltd. bought a new stake in PulteGroup during the third quarter valued at $174,347,000. American Century Companies Inc. boosted its stake in PulteGroup by 120.4% during the third quarter. American Century Companies Inc. now owns 1,703,049 shares of the construction company’s stock valued at $225,024,000 after buying an additional 930,287 shares during the period. Franklin Resources Inc. boosted its stake in PulteGroup by 5.0% during the third quarter. Franklin Resources Inc. now owns 12,900,271 shares of the construction company’s stock valued at $1,704,513,000 after buying an additional 609,640 shares during the period. Finally, First Trust Advisors LP boosted its stake in PulteGroup by 13.3% during the third quarter. First Trust Advisors LP now owns 3,623,917 shares of the construction company’s stock valued at $478,828,000 after buying an additional 424,011 shares during the period. 89.90% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In A number of research firms have weighed in on PHM. Seaport Research Partners restated a “sell” rating and set a $100.00 price target (down from $155.00) on shares of PulteGroup in a research report on Tuesday, April 7th. Zacks Research upgraded PulteGroup from a “strong sell” rating to a “hold” rating in a research report on Monday, April 13th. Truist Financial lowered their price target on PulteGroup from $170.00 to $150.00 and set a “buy” rating on the stock in a research report on Thursday, April 16th. Wells Fargo & Company raised their price target on PulteGroup from $132.00 to $140.00 and gave the company an “overweight” rating in a research report on Friday. Finally, Weiss Ratings upgraded PulteGroup from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, January 12th. Eleven investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, PulteGroup has an average rating of “Moderate Buy” and an average price target of $140.71.

Get Our Latest Analysis on PHM

Insider Activity at PulteGroup In other PulteGroup news, insider Ryan Marshall sold 111,250 shares of PulteGroup stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $133.86, for a total transaction of $14,891,925.00. Following the sale, the insider directly owned 659,392 shares of the company’s stock, valued at approximately $88,266,213.12. The trade was a 14.44% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, COO Matthew William Koart sold 15,309 shares of PulteGroup stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $135.79, for a total value of $2,078,809.11. Following the sale, the chief operating officer directly owned 42,418 shares in the company, valued at approximately $5,759,940.22. The trade was a 26.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 149,952 shares of company stock worth $20,162,165 over the last 90 days. 0.75% of the stock is owned by insiders.

PulteGroup Stock Down 2.7% PHM opened at $124.87 on Wednesday. The company has a market cap of $23.79 billion, a P/E ratio of 12.08, a P/E/G ratio of 1.62 and a beta of 1.33. The business’s 50-day moving average price is $124.96 and its 200-day moving average price is $124.73. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 0.14. PulteGroup, Inc. has a 12 month low of $95.20 and a 12 month high of $144.49.

PulteGroup (NYSE:PHM – Get Free Report) last released its quarterly earnings data on Thursday, April 23rd. The construction company reported $1.79 EPS for the quarter, missing the consensus estimate of $1.80 by ($0.01). PulteGroup had a return on equity of 16.41% and a net margin of 12.14%.The company had revenue of $3.41 billion during the quarter, compared to analysts’ expectations of $3.40 billion. During the same quarter in the prior year, the firm posted $2.57 EPS. The firm’s quarterly revenue was down 12.4% on a year-over-year basis. On average, equities analysts expect that PulteGroup, Inc. will post 10.06 EPS for the current year.

PulteGroup Dividend Announcement The firm also recently declared a quarterly dividend, which was paid on Thursday, April 2nd. Investors of record on Tuesday, March 17th were issued a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date was Tuesday, March 17th. PulteGroup’s payout ratio is currently 10.06%.

PulteGroup declared that its board has initiated a stock repurchase plan on Thursday, April 23rd that allows the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization allows the construction company to repurchase up to 6.1% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s management believes its stock is undervalued.

PulteGroup 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.

Featured Articles Five stocks we like better than PulteGroup

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Span, a California-based startup, has developed small, fractional data centers, or “nodes,” called XFRA units. The idea is to take advantage of unused electrical capacity on local grids, which the Span smart panels can pinpoint.

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 -4.4%, compared to the Zacks S&P 500 composite's +11% change. During this period, the Zacks Building Products - Home Builders industry, which PulteGroup falls in, has gained 2.4%. 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 $2.43 per share, indicating a change of -19.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -8.9% over the last 30 days.

The consensus earnings estimate of $10 for the current fiscal year indicates a year-over-year change of -12.6%. This estimate has changed -1.5% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $11.14 indicates a change of +11.4% from what PulteGroup is expected to report a year ago. Over the past month, the estimate has changed -2.6%.

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 ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of PulteGroup, the consensus sales estimate of $4.07 billion for the current quarter points to a year-over-year change of -7.5%. The $16.44 billion and $16.94 billion estimates for the current and next fiscal years indicate changes of -5% and +3.1%, respectively.

Last Reported Results and Surprise HistoryPulteGroup reported revenues of $3.41 billion in the last reported quarter, representing a year-over-year change of -12.4%. EPS of $1.79 for the same period compares with $2.57 a year ago.

Compared to the Zacks Consensus Estimate of $3.38 billion, the reported revenues represent a surprise of +0.7%. The EPS surprise was -0.56%.

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.

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.

In April, mortgage applications soared 21% year over year, per the Mortgage Bankers Association. Did it happen due to plunging interest rates? Nope -- the average interest rate for most 30-year fixed-rate mortgages actually moved up a notch, as of May 7, from 6.30% the week before to 6.37%, per Freddie Mac. (Those rates are down a mite from a year ago, when the average was 6.76%.)

There are multiple explanations for the rise in mortgage applications -- and multiple beneficiaries.

Image source: Getty Images.

Here are some explanations:

Pent-up demand: While many would-be homebuyers have been waiting for significantly lower rates before they buy, plenty don't want to wait any longer, or can't. Lower rates: Interest rates are down a little now. Less expectation of lower rates: Many people may no longer be expecting interest rates to fall sharply anytime soon -- because of inflation. When inflation rises, the Federal Reserve will act to cool the economy by hiking interest rates. Homebuilders positioned to profit When many people are looking to buy homes, that's good news for homebuilders. Here are a few to consider for your long-term portfolio:

1. Lennar Lennar (LEN 4.31%), with a recent market value near $21 billion, is a major American homebuilder, recently sporting a dividend yield of 2.2% -- and a total shareholder yield (including the effect of share buybacks) of 8.5%.

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It has a lot going for it, such as the fact that the U.S. housing market needs a lot more homes -- especially as millennials look to buy. In its first quarter, Lennar posted a decrease in revenue, but also noted a backlog of 15,588 homes, worth about $6 billion, and a 1% increase in new orders, to 18,515. Interestingly, Lennar and some other homebuilders are proposing building starter "Trump Homes" -- which could potentially spur sales.

Clearly, Lennar isn't firing on all cylinders in this environment, but that may be why its stock seems reasonably valued, with a recent price-to-sales ratio of 0.65, below the five-year average of 1.0. The recent price-to-earnings (P/E) ratio of 12.2 is a bit above the five-year average of 8.4.

2. DR Horton DR Horton (DHI 0.47%) is an even larger homebuilder, with a recent market value of nearly $40 billion. Its recent dividend yield of 1.2% is smaller than Lennar's, but its total yield (including share buybacks) is higher, at a recent 9.9%.

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It has built more than a million homes in America, and is poised to build more. Its second quarter also featured falling revenue (by 2% year over year) -- and a rising backlog of orders, worth about $6.4 billion.

A word of caution Despite some optimism for homebuilders, it's not the best of times overall. Buying now might serve you well -- especially if you collect a dividend while you wait -- but homebuilders may continue to face headwinds for longer. The war with Iran, for example, could disrupt our economy, as some tariffs already have, and inflation is pinching many consumers' pockets. If the economy slows, so will enthusiasm for homebuying -- though, of course, things do change over time, and people will still need and want to buy homes over the long run.

On May 20, 2026, PulteGroup Inc (PHM) shares rose 4.7% to a current price of $116.26. This increase comes amidst a 52-week trading range of $95.20 to $144.50, r