PulteGroup (PHM) Snaps 3-Day Losses on Buy Reco, Higher Price Target

We recently published 10 Stocks with Surprising Gains. PulteGroup, Inc. (NYSE:PHM) is one of Tuesday’s top performers.

PulteGroup snapped a three-day losing streak on Tuesday, jumping 11.52 percent to close at $121.17 apiece as investors took heart from an investment firm’s rating and price target upgrade for its stock.

In a market note, Seaport Global Securities raised its price target for PulteGroup, Inc. (NYSE:PHM) to $155, marking a 28-percent upside from its latest closing price. The brokerage also gave a “buy” recommendation for its stock.

The upgrade was based on PulteGroup, Inc.’s (NYSE:PHM) second quarter guidance, which affirmed a more favorable investment case for the company.

In the second quarter of the year, PulteGroup, Inc. (NYSE:PHM) dropped its net income by 24.8 percent to $608 million from $809 million in the same period last year.

Revenues also dipped by 4 percent to $4.4 billion from $4.59 billion year-on-year.

Home sale gross margin stood at 27 percent, lower than the 29.9 percent last year, but was within the company’s previously provided guidance.

While we acknowledge the potential of PHM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.