(PHM) PulteGroup - Ratings and Ratios

PulteGroup, Inc. (NYSE: PHM) is a leading U.S. homebuilder with operations spanning across the country. The company specializes in the acquisition and development of land for residential purposes, constructing a diverse range of housing products, including single-family detached homes, townhomes, condominiums, and duplexes. Its portfolio of brands, such as Centex, Pulte Homes, Del Webb, DiVosta Homes, John Wieland Homes and Neighborhoods, and American West, caters to various demographic segments, from first-time buyers to active adult communities. Beyond construction, PulteGroup offers mortgage origination services, sells servicing rights for originated loans, and provides title insurance and closing services, creating a vertically integrated homebuying experience. Founded in 1950, the company is headquartered in Atlanta, Georgia, and has established itself as one of the largest homebuilders in the U.S., with a strong focus on quality, design, and customer satisfaction.

From a technical perspective, PHM is currently trading below its 20-day, 50-day, and 200-day moving averages, indicating bearish momentum in the short to long term. The stocks average true range (ATR) of 4.12 suggests moderate volatility, with potential price fluctuations within a narrow range. The last price of 93.11 reflects a recent downtrend, as it is below the 20-day SMA of 98.85. Fundamental analysis highlights a market cap of $19.14 billion, with a trailing P/E ratio of 6.46 and a forward P/E of 7.75, signaling undervaluation relative to earnings expectations. The price-to-book ratio of 1.58 and a price-to-sales ratio of 1.07 indicate moderate valuation levels, while a return on equity (RoE) of 25.44% underscores strong profitability metrics.

3-Month Forecast: Based on the provided data, PHM is expected to face headwinds in the near term due to its position below key moving averages. The stock may encounter resistance at the 20-day SMA of 98.85 and the 50-day SMA of 102.35. Support levels could emerge near the 200-day SMA of 119.92, though this may not hold if broader market conditions deteriorate. The ATR of 4.12 suggests price fluctuations within a range of 89.99 to 97.23 over the next three months. Fundamentally, while the companys strong RoE and moderate valuation metrics are positive, rising interest rates and potential supply chain disruptions could weigh on performance. Overall, a sideways to slightly bearish trend is anticipated, with potential stabilization if the stock regains its 50-day SMA.