Is PulteGroup Stock Underperforming the S&P 500?
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With a market cap of $20.5 billion, PulteGroup, Inc. (PHM) is a leading U.S. homebuilder with operations spanning home construction and financial services. It builds a variety of homes, including single-family detached homes, townhomes, condominiums, and duplexes under brands like Centex, Pulte Homes, Del Webb, and others, catering to first-time, move-up, and active adult buyers.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and PulteGroup fits this criterion perfectly. Through its Financial Services segment, Pulte provides mortgage banking via Pulte Mortgage, along with title insurance and closing services.
Shares of the Atlanta, Georgia-based company pulled back 31.5% from its 52-week high of $149.47. PulteGroup’s shares have fallen marginally over the past three months, underperforming the broader S&P 500 Index’s ($SPX) nearly 7% gain over the same time frame.
In the longer term, PHM stock is down nearly 6% on a YTD basis, lagging behind SPX’s 2.6% rise. Moreover, shares of the homebuilder have decreased 10.2% over the past 52 weeks, compared to the 11.1% return of the SPX over the same time frame.
Despite recent fluctuations, the stock has been trading below its 50-day and 200-day moving averages since December last year.
On Apr. 22, shares of PulteGroup jumped 8.4% following better-than-expected Q1 2025 results. The company reported EPS of $2.57 and revenue of $3.9 billion, surpassing analyst expectations. Strong performance was driven by a solid home sale gross margin of 27.5% and a 6% rise in average sales price to $570,000, despite a 7% decline in home closings to 6,583 units.
In comparison, rival D.R. Horton, Inc. (DHI) has seen a sharper decline, with its stock down 13.4% over the past 52 weeks and 11.6% YTD, exceeding the drop in PHM stock.
Despite the stock’s weak performance, analysts remain moderately optimistic on PHM. The stock has a consensus rating of “Moderate Buy” from the 16 analysts covering the stock, and as of writing, it is trading below the mean price target of $124.96.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.