A Game Changer: Jim Cramer’s Latest Top 10 Stock Picks

8. PulteGroup Inc. (NYSE:PHM)

Number of Hedge Fund Investors: 35

Jim Cramer reports that Bank of America has increased its price targets for homebuilders, including PulteGroup Inc. (NYSE:PHM), highlighting the advantages of lower borrowing costs. BofA has also maintained a buy rating on PulteGroup Inc. (NYSE:PHM).

PulteGroup, Inc. (NYSE:PHM), one of the largest homebuilders in the U.S., has a promising outlook driven by several key factors. In its Q2 2024 earnings report, PulteGroup, Inc. (NYSE:PHM) announced total revenues of $3.4 billion, a 10% increase from the previous year, and net income rose to $634 million, up from $580 million in Q2 2023. PulteGroup, Inc. (NYSE:PHM) sold 6,182 homes in this quarter, reflecting strong demand despite market ups and downs, and it has a backlog valued at $7.1 billion, indicating robust future revenue potential.

The demand for new homes is particularly strong in entry-level and active adult markets, which PulteGroup, Inc. (NYSE:PHM) is strategically focusing on, as these groups tend to be less affected by economic shifts. PulteGroup, Inc. (NYSE:PHM) has also shown effective cost management, allowing it to maintain good profit margins even with rising material costs.

By following a careful land acquisition strategy and choosing desirable locations for its homes, PulteGroup, Inc. (NYSE:PHM) is well-prepared to take advantage of the current recovery in the housing market, driven by increasing household formations and buyer interest. Additionally, PulteGroup, Inc. (NYSE:PHM)’s expansion into new areas and diversification of its offerings further strengthen its revenue potential, solidifying its market position.