PulteGroup Shares Popped: What You Need to Know (PHM)

PulteGroup Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of homebuilder PulteGroup (NYSE: PHM ) jumped 10% briefly today after the company was upgraded by an analyst.

So what: Ticonderoga Securities thinks PulteGroup shares have gotten so cheap investors shouldn’t pass them up. Analyst Stephen East doesn’t think home sales will drop much more, and the company’s price/book value and normalized EPS multiples are at attractive levels. Of course, this comes a day after RBC Capital Markets analyst Robert Wetenhall said he was bearish on homebuilders and expects housing prices to decline further.

Now what: I’ve been hearing about a homebuilder recovery for years, and it never quite seems to take hold. Home prices may be stabilizing, but there is still a ton of inventory on the market that homebuilders have to compete against. This Fool just can’t get excited about a company posting losses in a housing market that is flat at best.

Interested in more info on PulteGroup? Add it to your watchlist.

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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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