Atlanta, Georgia-based PulteGroup, Inc. (PHM) is one of the largest homebuilders in the U.S. that designs, constructs, and sells residential homes across a wide range of buyer segments. Valued at a market cap of $26.6 billion, the company operates under well-known brands such as Pulte Homes, Centex, Del Webb, DiVosta, John Wieland Homes & Neighborhoods, and American West. 

Companies worth $10 billion or more are typically classified as “large-cap stocks,” and PulteGroup fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the residential construction industry. The company’s business model integrates land acquisition, home design, construction, and mortgage financing, enabling it to deliver both affordability and quality. With a focus on geographic diversification, energy-efficient designs, and community development, PHM has positioned itself as a leading player in the U.S. housing market.

This homebuilding company is currently trading 9.8% below its 52-week high of $149.47, reached on Oct. 21, 2024. Shares of PHM have rallied 32.7% over the past three months, outperforming the Nasdaq Composite’s ($NASX) 15.2% return during the same time frame.

Moreover, on a YTD basis, shares of PHM are up 23.8%, outpacing NASX’s 15.7% rise. However, in the longer term, PulteGroup has fallen 3.4% over the past 52 weeks, significantly underperforming NASX's 26.4% uptick over the same time period. 

To confirm its bullish trend, PHM has been trading above its 200-day moving average since late July, and has remained above its 50-day moving average since late April, with slight fluctuations. 

On Jul. 22, shares of PHM soared 11.5% after its better-than-expected Q2 earnings release. While the company’s revenue of $4.4 billion declined 4.3% from the same period last year, it came in marginally ahead of the consensus estimates. Moreover, its net income of $3.03 per share dropped by a notable 20.9% year-over-year, but handily surpassed analyst expectations of $2.92. A favorable consumer response to the late-June pullback in interest rates helped cushion the challenging environment and contributed to the company’s upbeat results.

PHM has outpaced its rival, D.R. Horton, Inc.’s (DHI) 11.5% decline over the past 52 weeks and 23.1% rise on a YTD basis. 

Looking at PHM’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 16 analysts covering it, and the mean price target of $137 suggests a 1.6% premium to its current price levels.