PulteGroup, D.R. Horton, Lennar Are S&P Gainers
The S&P 500 fell 5.95 points midday Wednesday to 1,366.23.
The homebuilders rose despite a report from Brockhouse Cooper that said prices of American homes aren't expected to increase soon. Pending home sales, reported Monday from the National Association of Realtors, rose 2% in January, near a two-year high. Analysts were expecting a 1% increase; sales dropped 3.5% in December.
Shares of PulteGroup increased 3.13% to $8.56.
The company has an estimated price-to-earnings ratio for next year of 16.55; the average for home construction companies is 21.2. For comparison, D.R. Horton and KB Home(KBH) both have higher forward P/Es of 17.8 and 29.62, respectively.
Eighteen of the 22 analysts who cover PulteGroup rated it hold; four analysts gave the stock a buy rating.
TheStreet Ratings gives PulteGroup a D+ grade and sell rating. The stock has risen 35.66% year to date.