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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in PulteGroup (PHM) ten years ago? It may not have been easy to hold on to PHM for all that time, but if you did, how much would your investment be worth today?
PulteGroup's Business In-Depth
With that in mind, let's take a look at PulteGroup's main business drivers.
Based in Atlanta, GA, PulteGroup Inc. engages in homebuilding and financial services businesses, primarily in the United States. The company conducts operations through two primary business segments – Homebuilding (which accounted for 97.2% as of 2021 total revenues) and Financial Services (2.8%).
The Homebuilding segment offers a wide variety of home designs including single family detached, townhouses, condominiums and duplexes at different prices, with a variety of options and amenities to all major customer segments: first-time, move-up and active adult. Pulte’s brand portfolio includes Pulte move-up brand, Centex first-time brand, Del Webb active adult, DiVosta Homes and John Wieland Homes and Neighborhoods.
The company operates in more than 40 markets in 23 states across the United States. The homebuilding division is broken down into six reportable segments; Northeast, Southeast, Florida, Texas, Midwest and West.
Pulte’s direct subsidiaries under the homebuilding segment include Pulte Diversified Companies Inc., Del Webb Corporation and Centex Corporation.
Pulte’s Financial Services business includes mortgage banking and title operations through Pulte Mortgage and other subsidiaries. Pulte Mortgage arranges financing by originating mortgage loans for homebuyers.
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in PulteGroup a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in May 2012 would be worth $4,356.14, or a 335.61% gain, as of May 6, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 202.89% and the price of gold increased 9.82% over the same time frame in comparison.
Analysts are anticipating more upside for PHM.
PulteGroup’s shares have outperformed the industry so far this year. This is likely to continue as it reported solid results in first-quarter 2022. Both earnings and revenue topped the Zacks Consensus Estimate and increased year over year on the back of a solid housing market backdrop. An improving economy, a favorable job market and rising wages helped mitigate the impacts of higher home prices and rising mortgage rates. Home sales gross and adjusted operating margins were up 350 basis points (bps) and 360 bps year over year. Yet, Financial Services pretax income declined 37.9% due to intense competition. Also, higher costs for building homes along with rising land, labor and raw material costs and low supply of new homes are a concern.
Over the past four weeks, shares have rallied 7.58%, and there have been 5 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.
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PulteGroup, Inc. (PHM) : Free Stock Analysis Report
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