PulteGroup Q3 Beats Estimates: Home Closings Up 12%, CEO Highlights Fed's Role in Addressing Affordability

Written by Emily J. Thompson, Senior Investment Analyst

PHM-2.32%

FCTE0%

FTCE-0.31%

Source: Benzinga

Updated: Oct 22 2024

0mins

Source: Benzinga

Third-Quarter Financial Performance: PulteGroup reported third-quarter revenue of $4.48 billion, exceeding expectations, with home sale revenues up 12% to $4.3 billion and a GAAP EPS of $3.35 beating the consensus of $3.15.
Market Outlook and Challenges: Despite a slight decline in net new orders, the dollar value increased by 3%, and CEO Ryan Marshall highlighted the structural shortage of homes and the potential impact of lower interest rates on affordability for buyers.

PHM

$124.8+Infinity%1D

Analyst Views on PHM

Wall Street analysts forecast PHM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PHM is 138.73 USD with a low forecast of 111.00 USD and a high forecast of 159.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

12 Analyst Rating

7 Buy

5 Hold

0 Sell

Moderate Buy

Current: 127.770

Low

111.00

Averages

138.73

High

159.00

Current: 127.770

Low

111.00

Averages

138.73

High

159.00

BofA

Rafe Jadrosich

Buy

maintain

$135 -> $145

2026-01-16

Reason

BofA

Rafe Jadrosich

Price Target

$135 -> $145

AI Analysis

2026-01-16

maintain

Buy

Reason

BofA analyst Rafe Jadrosich raised the firm's price target on PulteGroup to $145 from $135 and keeps a Buy rating on the shares. After underperforming the market in 2025, homebuilder stocks have rallied sharply year-to-date, but the firm believes weaker employment and migration trends, ongoing inflation and a more competitive selling environment driven by elevated new and resale inventory will pressure fundamentals through 2026 and make it a "reset year for homebuilders," the analyst tells investors in a year ahead note on the group.

RBC Capital

Mike Dahl

Sector Perform

downgrade

$112 -> $111

2026-01-09

Reason

RBC Capital

Mike Dahl

Price Target

$112 -> $111

2026-01-09

downgrade

Sector Perform

Reason

RBC Capital analyst Mike Dahl lowered the firm's price target on PulteGroup to $111 from $112 and keeps a Sector Perform rating on the shares. Goldman remains cautious into early 2026, with housing affordability still challenging and R&R potentially inflecting later in the year, the analyst tells investors in a research note. Nonresidential markets are mixed, key risks include policy changes, rates, and tariffs, and the sector is expected to remain volatile, with homebuilders the most cautious, distribution favored, and building products OEMs offering relatively attractive valuations.

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RBC Capital

Mike Dahl

Sector Perform

downgrade

$112 -> $111

2026-01-09

Reason

RBC Capital

Mike Dahl

Price Target

$112 -> $111

2026-01-09

downgrade

Sector Perform

Reason

RBC Capital analyst Mike Dahl lowered the firm's price target on PulteGroup to $111 from $112 and keeps a Sector Perform rating on the shares. RBC Capital remains cautious into early 2026, with housing affordability still challenging and R&R potentially inflecting later in the year, the analyst tells investors in a research note. Nonresidential markets are mixed, key risks include policy changes, rates, and tariffs, and the sector is expected to remain volatile, with homebuilders the most cautious, distribution favored, and building products OEMs offering relatively attractive valuations.

Citi

Anthony Pettinari

Neutral

downgrade

$135 -> $128

2026-01-08

Reason

Citi

Anthony Pettinari

Price Target

$135 -> $128

2026-01-08

downgrade

Neutral

Reason

Citi analyst Anthony Pettinari lowered the firm's price target on PulteGroup to $128 from $135 and keeps a Neutral rating on the shares. The firm updated estimates and targets in the homebuilding and building products group as part of its 2026 outlook. Citi continues to prefer heavy construction materials with exposure to infrastructure over the residential exposed names.

About PHM

PulteGroup, Inc. is a homebuilder in the United States. The Company's segments include Homebuilding and Financial Services. Its Homebuilding operations involve acquisition and development of land primarily for residential purposes within the United States and the construction of housing on such land. Its financial services business segment includes mortgage banking, title, and insurance agency operations, through Pulte Mortgage LLC (Pulte Mortgage) and other subsidiaries. Pulte Mortgage arranges financing through the origination of mortgage loans primarily for the benefit of its homebuyers. Its Homebuilding operations are aggregated into six segments: Northeast, Southeast, Florida, Midwest, Texas and West. The Company, through its brand portfolio that includes Centex, Pulte Homes, Del Webb, DiVosta Homes, American West and John Wieland Homes and Neighborhoods, offers a variety of home designs with varying levels of options and amenities to its customer groups.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.