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If You Invested $1000 in PulteGroup a Decade Ago, This is How Much It'd Be Worth Now
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in PulteGroup (PHM - Free Report) ten years ago? It may not have been easy to hold on to PHM for all that time, but if you did, how much would your investment be worth today?
PulteGroup's Business In-Depth
With that in mind, let's take a look at PulteGroup's main business drivers.
Based in Atlanta, GA, PulteGroup Inc. engages in homebuilding and financial services businesses, primarily in the United States. The company conducts operations through two primary business segments – Homebuilding (which accounted for 98.1% as of 2022 total revenues) and Financial Services (1.9%).
The Homebuilding segment offers a wide variety of home designs including single family detached, townhouses, condominiums and duplexes at different prices, with a variety of options and amenities to all major customer segments: first-time, move-up and active adult. Pulte’s brand portfolio includes Centex, Pulte Homes,Del Webb, DiVosta Homes, John Wieland Homes and Neighborhoods, and American West.
The company operates in 810 active communities in 42 markets in 24 states across the United States in 2022. The homebuilding division is broken down into six reportable segments; Northeast, Southeast, Florida, Texas, Midwest and West.
Pulte’s direct subsidiaries under the homebuilding segment include Pulte Diversified Companies Inc., Del Webb Corporation and Centex Corporation.
Pulte’s Financial Services business includes mortgage banking and title operations through Pulte Mortgage and other subsidiaries. Pulte Mortgage arranges financing by originating mortgage loans for homebuyers.
Backlog at the end of third-quarter 2023 was 13,547 units, which was down 20.6% year over year. In addition, potential housing revenues from the backlog decreased by 23.2% from the prior-year quarter to $8.13 billion.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in PulteGroup ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in January 2014 would be worth $5,564.95, or a gain of 456.50%, as of January 23, 2024, and this return excludes dividends but includes price increases.
The S&P 500 rose 162.92% and the price of gold increased 57.08% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for PHM.
PulteGroup's shares have broadly outperformed its industry in the past year. The company is benefiting from its solid operating model, which strategically aligns the production of build-to-order and quick-move-in homes with applicable demand across consumer groups. Owing to better demand conditions, the company raised investment in land development and the purchase of new land assets over the years. This is reflected in its focus on building a more efficient land pipeline. Earnings estimates for 2023 have improved in the past 30 days, depicting analysts' optimism over the stock's growth potential. However, due to affordability issues and project delays, it now expects to deliver 29,000 homes this year versus 29,500 expected earlier. Also, demand and cost dynamics are impacting margins as well as earnings.
Shares have gained 6.65% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in PulteGroup a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in PulteGroup (PHM - Free Report) ten years ago? It may not have been easy to hold on to PHM for all that time, but if you did, how much would your investment be worth today?
PulteGroup's Business In-Depth
With that in mind, let's take a look at PulteGroup's main business drivers.
Based in Atlanta, GA, PulteGroup Inc. engages in homebuilding and financial services businesses, primarily in the United States. The company conducts operations through two primary business segments – Homebuilding (which accounted for 98.1% as of 2022 total revenues) and Financial Services (1.9%).
The Homebuilding segment offers a wide variety of home designs including single family detached, townhouses, condominiums and duplexes at different prices, with a variety of options and amenities to all major customer segments: first-time, move-up and active adult. Pulte’s brand portfolio includes Centex, Pulte Homes,Del Webb, DiVosta Homes, John Wieland Homes and Neighborhoods, and American West.
The company operates in 810 active communities in 42 markets in 24 states across the United States in 2022. The homebuilding division is broken down into six reportable segments; Northeast, Southeast, Florida, Texas, Midwest and West.
Pulte’s direct subsidiaries under the homebuilding segment include Pulte Diversified Companies Inc., Del Webb Corporation and Centex Corporation.
Pulte’s Financial Services business includes mortgage banking and title operations through Pulte Mortgage and other subsidiaries. Pulte Mortgage arranges financing by originating mortgage loans for homebuyers.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in PulteGroup ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in January 2014 would be worth $5,564.95, or a gain of 456.50%, as of January 23, 2024, and this return excludes dividends but includes price increases.
The S&P 500 rose 162.92% and the price of gold increased 57.08% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for PHM.
PulteGroup's shares have broadly outperformed its industry in the past year. The company is benefiting from its solid operating model, which strategically aligns the production of build-to-order and quick-move-in homes with applicable demand across consumer groups. Owing to better demand conditions, the company raised investment in land development and the purchase of new land assets over the years. This is reflected in its focus on building a more efficient land pipeline. Earnings estimates for 2023 have improved in the past 30 days, depicting analysts' optimism over the stock's growth potential. However, due to affordability issues and project delays, it now expects to deliver 29,000 homes this year versus 29,500 expected earlier. Also, demand and cost dynamics are impacting margins as well as earnings.
Shares have gained 6.65% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.