Pulte is the gold standard for homebuilders. Analysts lack ability to help investors buy low.
Upgrades need to be made before the big moves up but analysts lack courage.
Downgrades after stock drops are little help either.
I am long and will continue to accumulate under 20. we may trade in a range for some time.
Homebuilders will take hits by shorts as interest rates rise. Personally, I don't think interest rates will effect the market until it breaks 6%. The other problem for PHM is its low book value. Here people are not seeing the previous write downs on land assets don't reflect the real value today. These undervalued land prices will mean higher profits for PHM when they report earnings, so look for the price of PHM to increase around earnings.
LEN reported great results and strong growth forecast but the stock has languished. Why do you expect any different in the case of PHM? It appears investors have lost interest in homebuilders even as the housing recovery continues...
You may be right, but I think 16.50 may be too low. The initial paradigm was that higher interest rates would stop homebuilders cold, but I see a more realistic view coming into play- that homebuilders normally operate in a much higher interest rate environment than we are likely too see for years, and that this pullback may represent an opportunity to buy. Lets have a friendly competition, I say we see $21.50 before 16.50.