PulteGroup Offers A Stable Home For Real Estate Investors

PulteGroup, Inc. remains a soft Buy despite near-term headwinds, supported by a strong backlog and prudent balance sheet management. PHM's fundamentals have deteriorated recently, but net new orders and backlog are growing, signaling resilience amid industry challenges. Management guides for 2026 closings of 28,500–29,000 homes and $1 billion in operating cash flow, with continued capital returns to shareholders. While PHM trades at a premium to peers, its low net leverage (0.54) and strategic lot control justify a bullish long-term outlook. Generally speaking, I am a fan of the housing market. I have recognized that there are certain short-term challenges facing the industry. Home affordability issues abound with home prices far higher than they should be and interest