Should You Invest in PulteGroup (PHM)?

Miller Value Partners, an investment management firm, published its “Miller Opportunity Equity” fourth quarter 2021 investor letter – a copy of which can be seen here. A quarterly net decline of 4.29% has been recorded by the fund for the fourth quarter of 2021, compared to the S&P 500 Index’s 28.71% gain for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Miller Value Partners Opportunity Equity, in its Q4 2021 investor letter, mentioned PulteGroup, Inc. (NYSE: PHM) and discussed its stance on the firm. PulteGroup, Inc. is an Atlanta, Georgia-based home construction company with a $13.3 billion market capitalization. PHM delivered a -7.56% return since the beginning of the year, while its 12-month returns are up by 12.19%. The stock closed at $52.84 per share on February 3, 2022.

Here is what Miller Value Partners Opportunity Equity has to say about PulteGroup, Inc. in its Q4 2021 investor letter:

“Some homebuilders, like Pulte Homes (PHM), traded down to half their financial crisis lows despite early signs of housing fundamentals improving. This sharp divergence between the stock prices and the fundamentals created a great buying opportunity. Homebuilders were top performers in 2012, with Pulte gaining triple digits and many others posting similar gains.”

Our calculations show that PulteGroup, Inc. (NYSE: PHM) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. PHM was in 35 hedge fund portfolios at the end of the third quarter of 2021, compared to 34 funds in the previous quarter. PulteGroup, Inc. (NYSE: PHM) delivered a 7.66% return in the past 3 months.

In August 2021, we published an article that includes PHM in the 5 Best Housing Stocks of 2021. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.