We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PulteGroup's (PHM) Del Webb Expands With Sagebriar Community
Read MoreHide Full Article
The current market backdrop is faring well for homebuilders like PulteGroup, Inc. (PHM - Free Report) , attributable to stable interest rates, limited inventory of existing homes and improving economic conditions. These tailwinds are sparking consumer confidence, which is leading to increased demand for new homes. To satiate the growing demand for new homes, PulteGroup is undertaking several initiatives to equip itself with a readily available supply of homes and lots.
In consideration of these initiatives, one of PulteGroup’s homebuilding brands, Del Webb, announced its newest community Sagebriar in the Indianapolis area. To stand out in the market of competitive peers, the community will offer newly constructed single-story homes and resort-style amenities nestled among ample parks, walking trails and ponds.
Furthermore, Del Webb’s Sagebriar will offer two design collections of ranch homes with enhanced features and upgrades. The grand opening of this community is anticipated in late spring 2025.
As the housing market begins to normalize, PHM is optimistic about its community expansion initiatives as it believes this growing market trend is likely to foster its growth prospects in 2024 and beyond.
Strategic Initiatives Bode Well
PulteGroup focuses on various strategic initiatives that aid it in fostering its new homes and lot supply to satisfy the increasing housing demand. Its land acquisition strategy, which stands out as one of the primary initiatives, has resulted in improved volumes, revenues and profitability for quite some time now. In 2023, the company spent $4.3 billion on land acquisition and development. Of this amount, 59% was allocated to development. For 2024, PHM plans to raise its land spending to about $5 billion.
PHM also remains focused on the growing demand for entry-level homes and addresses the need for lower-priced homes, given the affordability concerns prevailing in the U.S. housing market. The company has been reaping the benefits from the successful execution of strategic initiatives to boost profitability, with a focus on entry-level homes. In fourth-quarter 2023, it comprised 40% of first-timers, 36% of move-ups and 24% of active adults. The shift from mix to first-time is in line with its strategy of having more than one-third of business in the first-time buyer space.
Image Source: Zacks Investment Research
Owing to the aforementioned tailwinds, shares of this homebuilding and financial services company hiked 79.6% in the past year, outperforming the Building Products - Home Builders industry’s 53.2% growth.
With the anticipation of sustained lower interest rates in 2024, PulteGroup remains optimistic that the enhanced affordability landscape will continue to attract prospective buyers.
Zacks Rank & Other Key Picks
PulteGroup currently carries a Zacks Rank #2 (Buy).
Here are some other top-ranked stocks from the Construction sector.
AWI delivered a trailing four-quarter earnings surprise of 13.1%, on average. The stock has surged 65% in the past year. The Zacks Consensus Estimate for AWI’s 2024 sales and earnings per share (EPS) indicates growth of 4.1% and 7.9%, respectively, from the prior-year reported levels.
Vulcan Materials Company (VMC - Free Report) presently sports a Zacks Rank of 1. VMC delivered a trailing four-quarter earnings surprise of 19.5%, on average. The stock has jumped 51.5% in the past year.
The Zacks Consensus Estimate for VMC’s 2024 sales and EPS indicates improvements of 2.4% and 19.7%, respectively, from a year ago.
Sterling Infrastructure, Inc. (STRL - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 20.4%, on average. STRL shares have surged 168.6% in the past year.
The Zacks Consensus Estimate for STRL’s 2024 sales and EPS indicates increases of 11.7% and 11.4%, respectively, from the prior-year reported levels.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
PulteGroup's (PHM) Del Webb Expands With Sagebriar Community
The current market backdrop is faring well for homebuilders like PulteGroup, Inc. (PHM - Free Report) , attributable to stable interest rates, limited inventory of existing homes and improving economic conditions. These tailwinds are sparking consumer confidence, which is leading to increased demand for new homes. To satiate the growing demand for new homes, PulteGroup is undertaking several initiatives to equip itself with a readily available supply of homes and lots.
In consideration of these initiatives, one of PulteGroup’s homebuilding brands, Del Webb, announced its newest community Sagebriar in the Indianapolis area. To stand out in the market of competitive peers, the community will offer newly constructed single-story homes and resort-style amenities nestled among ample parks, walking trails and ponds.
Furthermore, Del Webb’s Sagebriar will offer two design collections of ranch homes with enhanced features and upgrades. The grand opening of this community is anticipated in late spring 2025.
As the housing market begins to normalize, PHM is optimistic about its community expansion initiatives as it believes this growing market trend is likely to foster its growth prospects in 2024 and beyond.
Strategic Initiatives Bode Well
PulteGroup focuses on various strategic initiatives that aid it in fostering its new homes and lot supply to satisfy the increasing housing demand. Its land acquisition strategy, which stands out as one of the primary initiatives, has resulted in improved volumes, revenues and profitability for quite some time now. In 2023, the company spent $4.3 billion on land acquisition and development. Of this amount, 59% was allocated to development. For 2024, PHM plans to raise its land spending to about $5 billion.
PHM also remains focused on the growing demand for entry-level homes and addresses the need for lower-priced homes, given the affordability concerns prevailing in the U.S. housing market. The company has been reaping the benefits from the successful execution of strategic initiatives to boost profitability, with a focus on entry-level homes. In fourth-quarter 2023, it comprised 40% of first-timers, 36% of move-ups and 24% of active adults. The shift from mix to first-time is in line with its strategy of having more than one-third of business in the first-time buyer space.
Image Source: Zacks Investment Research
Owing to the aforementioned tailwinds, shares of this homebuilding and financial services company hiked 79.6% in the past year, outperforming the Building Products - Home Builders industry’s 53.2% growth.
With the anticipation of sustained lower interest rates in 2024, PulteGroup remains optimistic that the enhanced affordability landscape will continue to attract prospective buyers.
Zacks Rank & Other Key Picks
PulteGroup currently carries a Zacks Rank #2 (Buy).
Here are some other top-ranked stocks from the Construction sector.
Armstrong World Industries, Inc. (AWI - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AWI delivered a trailing four-quarter earnings surprise of 13.1%, on average. The stock has surged 65% in the past year. The Zacks Consensus Estimate for AWI’s 2024 sales and earnings per share (EPS) indicates growth of 4.1% and 7.9%, respectively, from the prior-year reported levels.
Vulcan Materials Company (VMC - Free Report) presently sports a Zacks Rank of 1. VMC delivered a trailing four-quarter earnings surprise of 19.5%, on average. The stock has jumped 51.5% in the past year.
The Zacks Consensus Estimate for VMC’s 2024 sales and EPS indicates improvements of 2.4% and 19.7%, respectively, from a year ago.
Sterling Infrastructure, Inc. (STRL - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 20.4%, on average. STRL shares have surged 168.6% in the past year.
The Zacks Consensus Estimate for STRL’s 2024 sales and EPS indicates increases of 11.7% and 11.4%, respectively, from the prior-year reported levels.