Is PHM a good stock to buy?
We came across a bullish thesis on PulteGroup, Inc. on InfoArb Sheets’s Substack
In this article, we will summarize the bulls’ thesis on PHM. PulteGroup, Inc.’s share was trading at $122.78 as of June 9th. PHM’s trailing and forward P/E were 11.87 and 12.24 respectively according to Yahoo Finance. yuttana Contributor Studio/ PulteGroup, Inc. (NYSE: PHM) is a U.S. homebuilder operating across 45 markets through brands such as Pulte Homes, Centex, Del Webb, DiVosta, and John Wieland, with a business model spanning move-up, first-time, and active adult buyers, though recent strength is increasingly concentrated in higher-income segments that provide more resilient demand. 15 AI Stocks That Are Quietly Making Investors Rich Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential In Q1 2026, the company reported revenue of $3.41 billion versus $3.89 billion a year ago and GAAP EPS of $1.79 versus $2.57, reflecting cyclical pressure from higher incentives and softer affordability-driven absorption, but underlying story is more constructive as orders grew, spec inventory fell 24% in 90 days, and management reaffirmed confidence gross margins are expected to bottom in Q2 before improving through the second half of 2026.
The company is actively shifting back toward a build-to-order model, at 43% versus a 60% historical target, which creates an embedded margin recovery lever as discount-heavy spec closings roll off. Regional strength in Florida, where orders rose 18% across markets, highlights uneven durable demand pockets, while move-up and active adult buyers continue to anchor performance even as first-time buyer affordability remains challenged. PulteGroup maintains balance sheet strength with $1.8 billion in cash and effectively zero net debt-to-capital, enabling continued buybacks, land investment discipline, and buyer support without financial strain.