With a market cap of $20.5 billion, PulteGroup, Inc. (PHM) is a leading U.S. homebuilder that designs and constructs a wide range of residential properties, including single-family homes, townhomes, condominiums, and duplexes under multiple brand names. Through its Homebuilding and Financial Services segments, it also offers mortgage financing, title insurance, and closing services to support homebuyers nationwide.

Shares of the Atlanta, Georgia-based company have underperformed the broader market over the past 52 weeks. PHM has dropped 17.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 10.7%. Moreover, shares of PulteGroup are down 7.2% on a YTD basis, compared to SPX’s marginal decrease.

Focusing more closely, the homebuilder has lagged behind the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 19.7% return over the past 52 weeks. 

Shares of PulteGroup climbed 8.4% on Apr. 22 after the company reported stronger-than-expected Q1 2025 results. Pulte posted EPS of $2.57 and revenue of $3.9 billion, beating the consensus. The performance was supported by a solid home sale gross margin of 27.5% and an average sales price increase of 6% to $570,000, even as closings fell 7% to 6,583 homes. 

For the current fiscal year, ending in December 2025, analysts expect PHM’s EPS to decline 13.6% year-over-year to $11.48. However, the company's earnings surprise history is promising. It beat the consensus estimates in the last four quarters.

Among the 16 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, one “Moderate Buy,” and six “Holds.”

On Apr. 16, Oppenheimer analyst Tyler Batory lowered the price target on PulteGroup to $125 while maintaining an “Outperform” rating.

As of writing, PHM is trading below the mean price target of $124.96. The Street-high price target of $165 implies a potential upside of 62.6% from the current price levels.