Wall Street Has a Positive Opinion on PulteGroup, Inc. (PHM)

​PulteGroup, Inc. (NYSE:PHM) is one of the Undervalued Cyclical Stocks to Invest In. Wall Street has a positive opinion on PulteGroup, Inc. (NYSE:PHM). Recently, on January 9, Michael Dahl from RBC Capital reiterated a Hold rating on the stock and lowered the price target slightly from $112 to $111. Earlier on January 7, Citizens reiterated a Buy rating on the stock with a $145 price target.

​RBC Capital noted that they remain cautious on the housing sector during early 2026, mainly due to the challenging housing affordability. The firm expects the R&R to reach an inflection point later during the year. Moreover, the firm also highlighted the challenges in the nonresidential market, noting policy changes, tariffs, and rates as key challenges for the sector. The firm added that while the housing sector is expected to remain volatile, building products OEMs offer considerably better valuations.

​On the other hand, Citizens noted that they like the company’s revenue mix, which mainly focuses on move-up and adult buyers. The firm believes that this allows the company to move past the mortgage rate volatility and affordability challenges for new buyers in 2026.

Moreover, the firm also highlighted that PulteGroup, Inc. (NYSE:PHM) generates around two-thirds of its average annual sales from move-up and active adult buyers, thereby providing the company with a significant edge over its competitors.

​PulteGroup, Inc. (NYSE:PHM) is engaged in the homebuilding business in the US.

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Disclosure: None. This article is originally published at Insider Monkey.