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Here's How Much a $1000 Investment in PulteGroup Made 10 Years Ago Would Be Worth Today

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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to 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 contributed 98% as of 2023 to total revenues) and Financial Services (2%).

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 adults. Pulte’s brand portfolio includes Centex, Pulte Homes, Del Webb, DiVosta Homes, John Wieland Homes and Neighborhoods, and American West.

The company operates in 906 active communities in 46 markets in 26 states across the United States in 2023. The homebuilding division is broken down into six reportable segments; Northeast, Southeast, Florida, Texas, Midwest and West.

PulteGroup’s direct subsidiaries under the homebuilding segment include Pulte Diversified Companies Inc., Del Webb Corporation and Centex Corporation.

PulteGroup’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 first-quarter 2024 was 13,430 units, up 2.3% year over year. In addition, potential housing revenues from the backlog increased 2.8% from the prior-year quarter to $8.2 billion.

Bottom Line

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For PulteGroup, if you bought shares a decade ago, you're likely feeling really good about your investment today.

A $1000 investment made in May 2014 would be worth $6,376.10, or a gain of 537.61%, as of May 9, 2024, according to our calculations. This return excludes dividends but includes price appreciation.

The S&P 500 rose 176.58% and the price of gold increased 72.10% over the same time frame in comparison.

Analysts are anticipating more upside for PHM.

PulteGroup's shares have outperformed its industry so far this year. The company’s first-quarter earnings and revenues topped the Zacks Consensus Estimate and rose year over year on favorable demand conditions and a balanced operating model. Its solid operating model strategically aligns the production of build-to-order and quick-move-in homes with applicable demand across consumer groups. Backed by strong orders and closings, PulteGroup raised its full-year closings guidance to nearly 31,000 homes from 30,000 units expected earlier. Although PulteGroup anticipates land, labor and cost inflation to persist in 2024, it remains on track to invest approximately $5 billion in land acquisition & development in 2024. It continues to expect the average community count to rise in the range of 3-5% in each quarter of 2024.

Over the past four weeks, shares have rallied 5.84%, and there have been 7 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.

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