We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
If You Invested $1000 in PulteGroup a Decade Ago, This is How Much It'd Be Worth Now
Read MoreHide Full Article
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with 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 requires research, patience, and a little bit of risk. So, if you had invested in PulteGroup ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in September 2014 would be worth $6,965.61, or a 596.56% gain, as of September 3, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 182.10% and the price of gold went up 89.35% over the same time frame.
Analysts are forecasting more upside for PHM too.
Shares of PulteGroup have outperformed its industry in the year-to-date period. The company has been benefiting from a balanced operating model, mortgage rate buydown program, and favorable home pricing, which aided the increase in home closings. The company's 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. Earnings estimates for 2024 has moved up to $13.36 per share from $13.28 in the past 30 days, reflecting analysts optimism over the company's growth potential. 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.
The stock is up 6.72% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2024. The consensus estimate has moved up as well.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
If You Invested $1000 in PulteGroup a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with 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 requires research, patience, and a little bit of risk. So, if you had invested in PulteGroup ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in September 2014 would be worth $6,965.61, or a 596.56% gain, as of September 3, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 182.10% and the price of gold went up 89.35% over the same time frame.
Analysts are forecasting more upside for PHM too.
Shares of PulteGroup have outperformed its industry in the year-to-date period. The company has been benefiting from a balanced operating model, mortgage rate buydown program, and favorable home pricing, which aided the increase in home closings. The company's 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. Earnings estimates for 2024 has moved up to $13.36 per share from $13.28 in the past 30 days, reflecting analysts optimism over the company's growth potential. 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.
The stock is up 6.72% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2024. The consensus estimate has moved up as well.