PulteGroup Shares Build Investor Wealth

PHM is a nationwide homebuilder, operating in over 45 U.S. markets. It recently announced a new community in Utah, a state in which it hasn’t built for more than 20 years. And while the recent market for homes has been challenging due to mortgage rates and limited supply, the longer-term prospects are promising for firms like PulteGroup because of an overall shortage of places to live.

For the quarter that ended in June, PHM reported adjusted per-share earnings of $3.58. That’s a 19.3% increase over the same period last year and was attributed to more closings, higher prices, and bigger margins. Its $4.6 billion in total revenue beat consensus expectations of $4.48 billion and represents a 9.8% increase over its prior year revenue of $4.19 billion.

It’s no wonder PHM shares are up 21% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Loves PulteGroup Shares

Institutional volumes reveal plenty. Recently, PHM has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in PHM shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of discretionary names are under accumulation right now. But there’s a powerful fundamental story happening with the PulteGroup.

PulteGroup Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, PHM has had strong sales and earnings growth:

• 3-year sales growth rate (+13.9%)
• 3-year earnings growth rate (+32.9%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +3.5%.

Now it makes sense why the stock has been powering to new heights. PHM has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

PulteGroup has been a top-rated stock at MAPsignals for years. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last decade. The blue bars below show when PHM was a top pick…with shares rocketing up over time:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

PulteGroup Price Prediction

The PHM rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in PHM at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.