$PHM

New home sales declined in September due to high mortgage rates and economic uncertainty, according to the National Association of Home Builders. The average new home price fell 3.9% year-over-year to $400,400, with more homes selling below key price thresholds. Builders are offering incentives and constructing smaller homes to attract buyers. Lennar and PulteGroup reported challenges in mortgage qualification and consumer confidence, particularly among first-time buyers.

Citigroup maintained a Neutral rating for PulteGroup (PHM) but raised its price target to $127 from $122. The stock is currently trading at $121.17, slightly above its GF Value of $119.57, indicating a 1.3% overvaluation. PulteGroup has a strong GF Score of 94/100, with high ratings in financial strength and profitability.

Consumer discretionary companies reported mixed earnings this week. Six of nine beat EPS estimates, while four topped revenue forecasts. Notable results: GM, GPC, HAS, TSLA, LVS, TSCO, PHM, DECK, NVR. GM reported $3.70 adj. EPS and $50.02B revenue. TSLA reported $0.48 adj. EPS and $28.05B revenue.

AI-driven companies like SpaceX and Meta saw stock gains due to strong guidance, while others like Netflix and Tesla fell despite earnings beats due to weak outlooks. The market prioritizes forward visibility over past performance. Key data: SpaceX (EPS $0.35 vs $0.13, rev $14.58B vs $12.87B, +7.79%); Meta (EPS $7.40 vs $3.57, rev $64.6B vs $63.34B, +2.5%); Netflix (EPS $0.87 vs $0.82, rev $12.87B vs $12.87B, -4%).

RBC Capital kept its Sector Perform rating on PulteGroup with a $110 price target, suggesting a 7.9% downside from the last close. The firm cited weaker-than-expected earnings and market challenges, including demand slowdown and rising interest rates, for its cautious outlook.

PulteGroup, NVR, and M/I Homes reported Q3 2026 net income declines of 17%, 27%, and 37% YoY, respectively. Builder confidence fell to 29, the lowest since 2012. Builders are using concessions and rate buydowns to boost sales, impacting margins. NAHB cites affordability challenges and high mortgage rates as key issues.

Citigroup raised its price target for PulteGroup to $127 from $122. RBC also adjusted its target to $110 from $111, maintaining a Sector Perform rating. PulteGroup's stock is currently at $119.48, up 5.84% over 5 days and 5.74% year-to-date.

PulteGroup and NVR, major US homebuilders, reported quarterly earnings below estimates due to high mortgage rates and weak consumer confidence. PulteGroup cut its full-year home delivery guidance, while NVR reported a 13% revenue decline. PulteGroup's stock rose 4% in early trading, while NVR's stock was little changed.

PulteGroup reported Q3 2026 net income of $476M ($2.53 per share), down from $586M ($2.96 per share) a year earlier. Revenue fell 9% to $3.97B. Home sale gross margin decreased to 24.8% from 26.2%. The company repurchased $350M in shares and had $1.4B in cash. Closings and net new orders declined, but backlog grew 4% to 10,298 homes.

PULTEGROUP INC/MI/ (PHM) filed an SEC Form 8-K — Results of Operations and Financial Condition. FOR IMMEDIATE RELEASE Company Contact Investors: Jim Zeumer (404) 978-6434 jim.zeumer@pultegroup.com PULTEGROUP REPORTS THIRD QUARTER 2026 FINANCIAL RESULTS • Earnings of $2.53 Per Share • Closings of 6,876 Homes Generated Home Sale Revenues of $3.9 Billion • Home Sale Gross Marg