Should I buy PulteGroup stock in 2025? NZ Investor Guide

What is PulteGroup?

How much is the PulteGroup stock?

The price of PulteGroup stock is rising this week. As of now, PHM trades at USD 98.54, showing a 0.85% gain over the last 24 hours, while its change over the past 5 days is -0.34%. The company’s market capitalisation stands at USD 19.75 billion, with an average three-month volume of 2.17 million shares. The stock’s price-to-earnings (P/E) ratio is a modest 6.96, and it offers a dividend yield of 0.89%. With a beta of 1.38, PulteGroup shows above-average volatility—an important point for NZ investors seeking growth opportunities balanced by awareness of market swings.

Our full analysis of the PulteGroup stock

After a rigorous review of PulteGroup's latest financials, performance over the past three years, and comprehensive proprietary analysis synthesising fundamental indicators, technical signals, sector trends, and peer comparisons, our findings illuminate several key strengths. PulteGroup stands at a crossroads where both recent operational resilience and market-driven valuation dynamics coalesce. So, why might PulteGroup stock once again become a strategic entry point into the US residential construction sector in 2025?

Recent Performance and Market Context

PulteGroup (NYSE: PHM) currently trades at $98.54, recovering modestly with a daily gain of +0.85%. Within the past year, the stock has retreated from highs near $150, posting a year-to-date decrease of -9.51% and a six-month slide of -27.15%. Such a pullback, while notable, follows several years of extraordinary performance—PHM delivered 190% gains over five years and expanded revenue by nearly 12% in 2024 alone. This context situates the current price within a healthy longer-term uptrend, offering a more attractive entry point compared to previous valuations.

Crucially, recent company milestones inspire confidence. PulteGroup’s Q1 2025 financial report handily outperformed Wall Street expectations, bolstered by robust revenues ($3.89B, $40M above consensus) and a 4.05% earnings-per-share beat. Operational highlights include over 6,500 homes delivered and a resilient backlog—despite cyclic volatility, new community launches and the ongoing expansion of the Del Webb brand keep momentum strong.

Sector dynamics in the US and, by extension, implications for international investors such as those based in New Zealand, remain broadly constructive. A chronic undersupply of new homes in key American markets, stable demographic fundamentals (notably among the 55+ “active adult” cohort), and the potential for future rate cuts all suggest continuing end-demand. The sector has proven its ability to weather rising rates and material cost headwinds, and any easing of these constraints could swiftly restore upside pricing power and margins.

Technical Analysis

Technical signals for PHM are nuanced but increasingly constructive for forward-looking investors. The stock’s Relative Strength Index (RSI, 14 days) clocks in at 48.63—near-neutral, yet suggestive of a market no longer overstretched. The medium-term momentum, as measured by MACD (-0.37) and stochastic (43.87), still leans marginally negative, a common characteristic near the end of multi-month consolidations.

The moving averages tell a story of compression and potential inflection:

• Short-term buy signals: MA5 at $98.11 and MA10 at $98.08 suggest the stock is stabilising and poised for a potential rebound.
• Intermediate-term pressure: MA20, MA50, MA100, and MA200 (all above spot price) imply resistance, but also indicate the recent correction is likely close to exhaustion.

Strong support is established at $97.39 (recent day low), while $100.75 marks the near-term resistance. This sets the stage for a technical “reset,” where range-bound action around current levels often precedes renewed accumulation and bullish reversal—especially when fundamentals remain robust. A breakout above $101 would likely confirm a new bullish phase, favoured by medium-term investors.

Fundamental Analysis

PulteGroup’s fundamentals represent a shining example of operational efficiency and undervaluation within the homebuilding industry:

• Compelling growth: $17.95B in 2024 revenues (+11.7% y/y) and 2024 net income of $3.08B (+18.9%) reflect not only demand resilience but also leadership in premium price realisation.
• Margin strength: Q1 2025 gross margin held at a healthy 27.5%, underlining effective management of input costs.
• Superior profitability: Return on equity (ROE) is a striking 25.4%—substantially outperforming both the sector median and global large-cap averages.
• Justified valuation: The current P/E ratio (TTM) of 6.96 and forward P/E under 9 indicate a significant discount to both historical sector averages and S&P 500 constituents. Price-to-sales (1.14) and price-to-book (1.61) ratios further support the view that the market has yet to fully recognise recent operational gains.
• Dividend supported: Quarterly payout ($0.22/share; yield 0.89%) offers additional shareholder value, with a commitment to annual increases reflecting confidence in stable long-term cash generation.

Strategically, the company’s well-diversified operations across 24 states, scale-driven efficiencies, premium brands (Del Webb, Pulte Homes, Centex, DiVosta), and growing market share in the lucrative active adult segment reinforce its competitive advantage.

Volume and Liquidity

PulteGroup’s trading liquidity is notably robust and an important marker of institutional confidence:

• 3-month average volume: 2.17 million shares, supporting both nimble trading and committed long-term investors.
• Market cap: $19.75B, placing PHM firmly among the elite of the US homebuilders and supporting continued analyst coverage and index inclusion.

The current share float and trading patterns facilitate dynamic revaluations, while sustaining the potential for rapid price moves in response to news or sector-wide rallies.

Catalysts and Positive Outlook

Multiple forward-looking catalysts strengthen the bullish thesis:

• Strategic expansion: Continued geographic rollouts, especially for Del Webb-branded senior communities, directly target secular growth segments as US demographics age.
• Technological leadership: Pilots in robotic-assisted construction and digital workflow automation signal a commitment to innovating for cost-efficiency, quality, and margin protection.
• Brand and community initiatives: Programmes like “Built to Honor”—donating homes to veterans—not only deepen community goodwill but sharpen the company’s brand proposition.
• Forthcoming results: Next earnings (Q2 2025, scheduled for late July) offer a tangible near-term inflection point.

Crucially, consensus among Wall Street analysts remains overtly optimistic, with a target of $132.21 (+34% upside) and an average “Buy” recommendation—clear testament to the market’s recognition of PulteGroup’s underappreciated value and growth prospects.

On a macro level, prospects for moderation of interest rates, continued urban migration, and the persistent housing supply gap all provide tailwinds for the US residential construction sector.

Investment Strategies

Given the convergence of compelling valuation, resilient fundamentals, and constructive sector outlook, PHM offers attractive scenarios across investment timeframes:

• Short-term: Current levels, adjacent to technical support ($97–98), may provide an ideal positioning ahead of Q2 results or any sector-wide bullish catalysts. Short-term traders could benefit from a mean-reversion rally as technical oversold conditions abate.
• Medium-term: Investors seeking a rebound from cyclical lows may find this period opportune, anticipating renewed momentum from positive earnings, policy easing, or further operational outperformance.
• Long-term: PulteGroup’s leadership, brand strength, strategic land bank, and innovation pipeline support a durable secular growth thesis—as well as the potential for continued dividend enhancements and capital returns.

Accumulating in tranches around current price levels, while monitoring support at $97 and subsequent breakouts above $101, could optimise risk-adjusted entry in the weeks to come.

Is it the Right Time to Buy PulteGroup?

In summary, the recent moderation in PulteGroup’s share price appears misaligned with the company’s demonstrated operational strength, rock-solid fundamentals, and clear path to future growth. Its undervalued P/E ratio, resilient profit margins, and strategic initiatives position PHM as a standout opportunity within the global real estate and construction landscape. The convergence of technical reset, robust liquidity, broad-based analyst support, and transformative catalysts suggests that investors should give this stock renewed consideration.

With upcoming earnings and secular housing tailwinds providing clear visibility for future outperformance, PulteGroup seems to represent an excellent opportunity for NZ-based investors seeking exposure to high-quality US growth at an attractive price. The combination of operational excellence, prudent capital allocation, and multiple upside drivers justify a markedly optimistic view of PHM moving through 2025 and beyond.

For investors prioritising growth, value, and resilience in a volatile market, PulteGroup offers a rare intersection of potential and conviction—timing that, in our assessment, justifies fresh and serious attention.

How to buy PulteGroup stock in New Zealand?

Buying shares of PulteGroup (NYSE: PHM) online is both straightforward and secure when you use a regulated broker in New Zealand. Investors can typically choose between two main approaches: traditional share ownership (spot buying), where you hold actual PulteGroup shares in your name, or Contracts for Difference (CFDs), which let you speculate on price movements without owning the underlying shares. Each method serves different investment objectives and risk profiles—details that are essential to understand before investing. To help you choose the right broker, see the comprehensive comparison further down this page.

Spot Buying

When you buy PulteGroup shares for cash, you become a direct shareholder, benefiting from potential capital gains and any dividends paid. This is the traditional, long-term investment method, and it’s popular with those looking to build wealth over time. Most NZ-based online brokers charge a fixed commission per transaction—typically around NZ$5 to NZ$15.

Example

Suppose the PulteGroup share price is USD $98.54 (about NZ$161* per share). If you invest NZ$1,000, after deducting a brokerage fee of NZ$5, you can buy roughly 6 shares (as 6 × NZ$161 = NZ$966, plus fee totals NZ$971).

✔️ Gain scenario: If the share price rises by 10%, your holding is now valued at NZ$1,100.

Result: That’s a gross gain of NZ$100, or +10% on your investment (before tax and currency fluctuations).

* Exchange rate used: NZD/USD ≈ 0.61

Trading via CFD

CFD (Contract for Difference) trading allows you to speculate on the price changes of PulteGroup shares without directly owning them. With CFDs, you can use leverage—meaning you only put down a fraction of the trade’s value to control a larger position. CFDs have different costs: instead of a flat brokerage fee, you pay a “spread” (the difference between buy and sell prices) and, for overnight trades, a daily financing charge.

Example

You open a CFD position on PulteGroup shares with NZ$1,000 and use 5× leverage, giving you market exposure of NZ$5,000.

✔️ Gain scenario: If PulteGroup’s share price rises by 8%, your position earns 8% × 5 = 40%.

Result: A gain of NZ$400 on your NZ$1,000 investment (excluding spreads and financing fees).

Final Advice

Before investing in PulteGroup stock, it’s wise to carefully compare brokers’ fees, available features, and trading conditions. Each method—spot buying or CFDs—offers distinct advantages, depending on whether you seek long-term ownership or short-term, leveraged exposure. Your choice should reflect your financial goals, experience, and risk tolerance. For side-by-side comparisons of top NZ brokers, refer to the comprehensive table just below.

Our 7 tips for buying PulteGroup stock

The latest news about PulteGroup

PulteGroup’s Q1 2025 earnings surpassed analyst expectations with net income of $523 million and robust margins. The company reported first-quarter revenues of $3.89 billion, exceeding projections by $40 million, and achieved an earnings per share (EPS) of $2.57 versus the anticipated $2.47, marking a 4.05% surprise. Gross margins stood at an impressive 27.5%, which outperforms sector averages and underscores operational resilience amid higher input costs. This strong financial performance highlights PulteGroup’s adaptability and cost control, providing reassurance to international investors—including those in New Zealand—who monitor U.S. housing market exposure via diversified portfolios.

Consensus analyst price target for PulteGroup indicates 34% upside with clear “Buy” recommendations from major brokerages. A broad base of Wall Street analysts now assign an average price target of $132.21 per share, well above the current $98.54, reflecting both a favorable outlook on earnings and positive sector sentiment. This optimism is supported by ongoing demographic tailwinds in the U.S. housing market and management’s ability to deliver consistent returns. For New Zealand-based institutional and retail investors seeking U.S. growth opportunities, PulteGroup’s discounted valuation (P/E below 7) and consensus “Buy” rating stand out as attractive signals for allocations in international equity portfolios.

The upcoming quarterly dividend of $0.22 per share reaffirms PulteGroup’s commitment to shareholder returns despite sector volatility. Announced on May 1, 2025, and with an ex-dividend date of June 17, this dividend results in a forward yield of 0.89%. While modest, it demonstrates resilience in capital management and ongoing shareholder value focus amid elevated interest rates and cyclical risk in U.S. real estate. This stable payout structure may appeal to New Zealand investors who prioritize steady income streams and dividend consistency when evaluating international equities for retirement or diversified strategies.

PulteGroup continues to expand its 55+ senior housing segment, a structural growth area with limited international direct competitors. The opening of two new Del Webb communities in May underscores a strategic emphasis on the U.S. active adult market, which benefits from long-term demographic aging trends. As New Zealand faces similar pressures in senior housing provision and has limited domestic investment vehicles dedicated to such specific segments, PulteGroup’s leadership here may provide valuable exposure to global aging trends and serve as a benchmark for local market innovations in retirement living.

The stock’s liquidity and visibility remain strong, supporting accessibility for New Zealand-based investors on global trading platforms. PulteGroup’s average three-month daily volume of over 2 million shares and NYSE listing ensure ease of trading for offshore investors, including those in New Zealand via platforms that support major U.S. stocks. The company’s ongoing news flow, sizable market capitalization ($19.75 billion), and inclusion in relevant indices further bolster analyst coverage and market transparency, facilitating reliable portfolio monitoring and risk management for NZ investors seeking exposure to the resilience and opportunity of the U.S. residential construction sector.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.