- The sharp rise in home prices and new home sales over the past two years is due to a record housing shortage.
- There is little evidence that the housing boom was due to debt-driven excess demand.
- Pulte had an excellent Q1 despite the fact that supply chain problems restricted construction and made Pulte turn away sales.
- I expect Pulte to earn $11 this year and $9 a share the next year.
- Despite this good news, Pulte is at a historically low valuation. The stock, therefore, has a large upside as housing fears dissipate.
For further details see:
PulteGroup: Buy. Housing Is In A Bullish Shortage, Not A Bearish Bubble