PulteGroup: A Strong Buy Due To Secular Tailwinds And Valuation
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Blue Chip Portfolios1.97K FollowersFollow5ShareSavePlay(11min)CommentsSummaryPulteGroup is rated a Strong Buy due to secular housing shortages and a highly attractive valuation.PHM’s differentiated, data-driven strategy, conservative leverage profile, and geographic diversification have helped drive superior ROE versus peers and de-risked its profile.Shares trade at 11.5x FY26 and 10x FY27 EPS, a significant discount to the S&P 500, despite robust long-term EPS growth potential.An aggressive share repurchase program and strong balance sheet further enhance PHM’s investment case amid favorable long-term housing fundamentals. ablokhin/iStock Editorial via Getty Images Shares of PulteGroup, Inc. (PHM) have a long history of delivering strong performance for investors. PulteGroup shares have delivered a total return of 709% over the past decade. Comparably, the S&P 500 has delivered a total returnThis article was written byBlue Chip Portfolios1.97K FollowersFollowBlue Chip Portfolios is an investment publication company focused on delivering investing insights on single stocks, ETFs, and CEFs.
Blue Chip Portfolios is also the publisher of the Blue Chip Portfolio's Newsletter on BeehiivAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in PHM over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.