Pulte Homes Inc (PHM-N)

Our PAST TOP PICK with PHM has triggered its stop at $109.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment gain of 36% when combined with the previous buy recommendations.  

Our PAST TOP PICK with PHM is progressing well.  To remain disciplined, we recommend trailing up the stop (from $100) to $109 at this time.  

Our PAST TOP PICK with PHM is progressing well.  To be disciplined, we recommend trailing up the stop to $100 at this tIme.

Our PAST TOP PICK with PHM is progressing well.  To remain disciplined, we recommend trailing up the stop (from $82) to $94 at this time.  

Our PAST TOP PICK with PHM is progressing well.  To remain disciplined, we recommend trailing up the stop (from $75) to $82 at this time.  

Our PAST TOP PICK with PHM has achieved its target at $96.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $69) to $75.  

We reiterate PHM as a TOP PICK.  Recently reported earnings indicated a 43% increase in orders, which helped beat earnings expectations.  It trades at 8x earnings, under 2x book and supports a 30% ROE.  We like that cash reserves are growing, while debt is retired and shares bought back.  We recommend trailing up the stop (from $65) to $69, looking to achieve $96 -- upside potential of 17%.  Yield 0.7%

The US homebuilder saw a 24% increase in new orders over the year and 2nd quarter revenues were up 8% to over $4 billion.  It trades at 7x earnings, 1.7x book and supports a 31% ROE.  We like that cash reserves are growing, while debt is aggressively retired and shares bought back.  We recommend a stop-loss at $65, looking to achieve $97 -- upside potential of 23%.  Yield 0.8%  

Stockchase Research Editor: Michael O'Reilly This well diversified US home builder will continue to benefit from 30 year mortgage rates near historic lows -- especially as pandemic driven demand continues. It is trading at 8.5 times earnings, and projected to be only 7 times next years earnings. It pays a small dividend that is backed by an 11% payout ratio. Analysts at Raymond James and RBC upgraded their outlooks to $60 and $53, respectively. We would trade this with a $35 stop-loss, looking to achieve $52 -- over 23% upside. Yield 1.18% (Analysts’ price target is $52.21)