Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, homebuilder Pulte Homes (NYSE:PHM) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Pulte's business and see what CAPS investors are saying about the stock right now.

Pulte facts

Headquarters (Founded)

Bloomfield Hills, Mich. (1956)

Market Cap

$2.97 Billion


Residential Construction

Trailing-12-Month Revenue

$6.26 Billion


Founder/Chairman William Pulte

CEO Richard Dugas Jr.

Return on Equity (Average, Past Five Years and TTM)

(3.9%) and (41.2%)



Toll Brothers (NYSE:TOL)

CAPS Members Bearish on PHM Also Bearish on:

Lennar (NYSE:LEN)

D.R. Horton (NYSE:DHI)

CAPS Members Bullish on PHM Also Bullish on:

General Electric (NYSE:GE)


Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

Over on CAPS, fully 408 of the 510 All-Star members who have rated Pulte -- or 80% -- believe the stock will underperform the S&P 500 going forward. These bears include Infoguy10 and homebuilding guru floridabuilder2, who is ranked in the top 1% of our community.

In late December, Infoguy10 wrote that Pulte is a "turn and burn organization with no real vision for the future." Our CAPS member continues:

This should be evident by the situation they find themselves in. The housing failure was foreseeable, but they didn't, like the other big homebuilders, prepare for the downturn. They won't prepare for the recovery and will be caught with their pants around their ankles.

In a reply from two days ago, floridabuilder2 shares that exact bearish sentiment:

pulte has done zero since i first started blogging to reduce their land position.... from a cash / debt standpoint I am comfortable, but when I rate a builder it is based on what they are doing strategically as much as their ability to survive.... pulte is fallen from the 2nd tier to the 3rd tier of builder stocks...... 1st tier are the best... 4th tier are going bankrupt.

What do you think about Pulte Homes, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor selection. The Fool's disclosure policy always gets a perfect score.