PulteGroup, Inc. (PHM)

Purchase Info

Stock Price History

Stock Price Video

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Our View

PulteGroup is the third-largest home construction company in the US. It operates in 44 markets across 23 states in the country. Homebuilding is linked closely to the overall health of the economy. The company has had a good track record of sustaining high ROEs, high margins, and a low debt-to-equity ratio. It controls over 150,000 lots and is poised to grow long-term as the American economy emerges strongly from the pandemic.

The 10-year monthly chart of PulteGroup points to an almost decade-long uptrend that the stock has been in. There have been pullbacks are regular intervals, and the most significant one was in March 2020 when the price broke the bottom of the long-term trend. However, the recovery was swift, and the price bounced back before finding resistance at $49.5. The price then broke out of that level in March 2021 and touched a high of $64 before pulling back and briefly breaking the $49.5 level. The reversal came quickly thereafter, and currently, the price has crossed the $49.5 level again and now looks set to re-test the previous high is $64. A long position can be taken with a stop loss at the most recent swing low, around $46.
Position entered our long-term tracking portfolio today. Entry point at $57.28 and stop-loss $47.7 -22% below the entry point. The short-term to medium take profit at $64.81, giving a potential profit of 13%.

Data Explained

On the video and images above you will see the reason this stock was selected.

You will see the image is of a monthly chart of the stock showing the long-term upwards trend formed over the years. You will also see the entry point and the where the stop loss is placed. For more information please watch the video given.

Once it is time to move the original stop loss up you will see an additional image.

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