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If You Invested $1000 in PulteGroup a Decade Ago, This is How Much It'd Be Worth Now
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as 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 - Free Report) 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 contributed 98% as of 2023 to total revenues) and Financial Services (2%).
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 adults. Pulte’s brand portfolio includes Centex, Pulte Homes, Del Webb, DiVosta Homes, John Wieland Homes and Neighborhoods, and American West.
The company operates in 934 active communities in 46 markets in 26 states across the United States as of Jun 30, 2024. The homebuilding division is broken down into six reportable segments; Northeast, Southeast, Florida, Texas, Midwest and West.
PulteGroup’s direct subsidiaries under the homebuilding segment include Pulte Diversified Companies Inc., Del Webb Corporation and Centex Corporation.
PulteGroup’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.
The backlog at the end of second-quarter 2024 was 12,982 units, down 4% year over year. In addition, potential housing revenues from the backlog declined 1% from the prior-year quarter to $8.11 billion.
Bottom Line
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.
According to our calculations, a $1000 investment made in July 2014 would be worth $6,940.20, or a 594.02% gain, as of July 29, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 175.94% and the price of gold went up 76.22% over the same time frame.
Analysts are anticipating more upside for PHM.
PulteGroup’s second quarter 2024 earnings and revenues top the Zacks Consensus Estimate by 11.5% and 2.7%, respectively. The top and bottom lines grew year over year by 9.8% and 19.3%, respectively. The company benefited from a balanced operating model, mortgage rate buydown program, and favorable home pricing, which aided the increase in home closings. Its focus on delivering affordable entry-level homes amid volatile mortgage rates bodes well. Also, its land investments, strategy of lot controlling via options, and maintaining shareholder value are added benefits. Shares of PulteGroup have outperformed its industry in the year-to-date period. Yet, the company expects inflationary risks to persist at low single digits, marring margin prospects. Interest rate movements are likely to impact homebuying demand in the short term.
Over the past four weeks, shares have rallied 18.07%, and there have been 4 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in PulteGroup a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as 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 - Free Report) 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 contributed 98% as of 2023 to total revenues) and Financial Services (2%).
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 adults. Pulte’s brand portfolio includes Centex, Pulte Homes, Del Webb, DiVosta Homes, John Wieland Homes and Neighborhoods, and American West.
The company operates in 934 active communities in 46 markets in 26 states across the United States as of Jun 30, 2024. The homebuilding division is broken down into six reportable segments; Northeast, Southeast, Florida, Texas, Midwest and West.
PulteGroup’s direct subsidiaries under the homebuilding segment include Pulte Diversified Companies Inc., Del Webb Corporation and Centex Corporation.
PulteGroup’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.
The backlog at the end of second-quarter 2024 was 12,982 units, down 4% year over year. In addition, potential housing revenues from the backlog declined 1% from the prior-year quarter to $8.11 billion.
Bottom Line
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.
According to our calculations, a $1000 investment made in July 2014 would be worth $6,940.20, or a 594.02% gain, as of July 29, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 175.94% and the price of gold went up 76.22% over the same time frame.
Analysts are anticipating more upside for PHM.
PulteGroup’s second quarter 2024 earnings and revenues top the Zacks Consensus Estimate by 11.5% and 2.7%, respectively. The top and bottom lines grew year over year by 9.8% and 19.3%, respectively. The company benefited from a balanced operating model, mortgage rate buydown program, and favorable home pricing, which aided the increase in home closings. Its focus on delivering affordable entry-level homes amid volatile mortgage rates bodes well. Also, its land investments, strategy of lot controlling via options, and maintaining shareholder value are added benefits. Shares of PulteGroup have outperformed its industry in the year-to-date period. Yet, the company expects inflationary risks to persist at low single digits, marring margin prospects. Interest rate movements are likely to impact homebuying demand in the short term.
Over the past four weeks, shares have rallied 18.07%, and there have been 4 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.