10 Best Home Builder Stocks To Buy Now

6. PulteGroup, Inc. (NYSE:PHM)

Number of Hedge Fund Holders: 35

PulteGroup, Inc. (NYSE:PHM) is one of America’s leading homebuilders which was founded in 1950 and has delivered almost 750,000 homes across the nation. With operations in over 40 major cities, the company has grown to become one of the largest US homebuilders. The homebuilder meets the needs of first-time, move-up, and active-adult homebuyers through its brands including Pulte, Centex, Del Webb, DiVosta, American West, and John Wieland Homes and Neighborhoods. Through its financial services segment, the company also provides mortgage financing and title agency services.

PulteGroup serves as one of the industry leaders which is uniquely positioned to serve buyers at every stage of their lives. The Del Webb and DiVosta brands are the recognized leaders in serving over 55 buyers. Simultaneously, first-time homebuyers can seek value for their money in a Centex home and the luxury homebuilder John Wieland Homes and Neighborhoods offers new construction and neighborhoods in some of the most desirable locations. Over the past 5 years, Pulte has delivered higher returns and significantly stronger cash flows despite a slower growth trajectory.

2024 has proved to be a good year for PulteGroup, Inc. (NYSE:PHM) as the homebuilder continues to start homes at a pace that is consistent with closing 31,000 homes this year. Highlights from the firm’s second quarter include closings increasing by 8% to 8,097 homes, average sales price increasing by 2% to $549,000, and home sale gross margin increasing by 30 basis points to 29.9%. This rise in closings, average sales price, and gross margin resulted in a 19% rise in earnings.

The firm’s market position is backed up by its diversified portfolio, robust delivery and financials, strong cash flows, and the existing industry environment. Additionally, PulteGroup, Inc. (NYSE:PHM) is currently trading at 11 times its forward earnings, a discount of 34.36% to the sector. As of Q2, it is held by 35 hedge funds while Greenhaven Associates is the most prominent shareholder in the company.