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PulteGroup: Strong Contrarian Value Play 25% Undervalued

Jan. 03, 2022 2:32 PM ETPulteGroup, Inc. (PHM)3 Comments


  • Industry has been plagued by supply chain challenges that lack any quick remedy.
  • Strong backlog growth, robust demand momentum, and disciplined operational management point to material upside.
  • Significantly more pathways to multiple expansion.

Colonial Style House

ferrantraite/E+ via Getty Images

In 2020, homebuilders outperformed the broader market. While the S&P 500 delivered a total return of ~29%, homebuilders PulteGroup (NYSE:PHM), Lennar (LEN), and D.R. Horton (DHI) delivered returns of ~35, ~54%, and ~59%, respectively. This strong

This article was written by

I previously worked in the financial sector across multiple industries, including consumer, renewable energy, technology, healthcare, and industrials. I am a traditional "buy-and-hold" investor that prefers smaller cap, value stocks based on the academic research supporting long-term returns.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (3)

Homebuilders plummeted today. Nary reason why anywhere
lennar class b is 22% cheaper with better fundamentals.
OverTheHorizon profile picture
Agree with your assessment. Homebuilders experiencing Golden Decade—hardly a contrarian play. BZH TPH TMHC. Need lots too FOR.
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