This homebuilder beat earnings estimates by $0.03 last quarter, and forecasts for the next five years are for more than 26% annual growth.
PulteGroup, Inc. (PHM)
From AlphaProfit Sector Investors’ Newsletter
Rising interest rates have weighed on homebuilder shares, despite management comments on a strong 2018 spring selling season. Shares of homebuilder PulteGroup (PHM) have followed the group, losing 18% from their 2018 high.
This drop can be a good buying opportunity particularly if economic growth extends the housing recovery. Pulte earns an above group-average return on equity catering to first-time, move-up, and aging baby boomer buyers with its diverse set of brands.
Its shares appeal to growth-at-a-reasonable-price investors. They trade at 9.3X-2018 EPS versus prospects for 50% EPS growth. Buy up to $31.30. (Next earnings: ~ April 25)
Sam Subramanian, PhD, AlphaProfit Sector Investors’ Newsletter, www.alphaprofit.com, 281-565-6963, February 2018