5. Homebuilder PulteGroup (PHM), formed through the 2009 merger of Pulte Home and Centex, has been trying to overcome a brutal housing market, which hasn't rebounded despite tax credits and low interest rates. Pulte's third-quarter loss nearly tripled to $995 million, or $2.63 a share, from a year earlier as revenue declined 3.1%. The company's shares have lost 38% this year. It's unlikely that the housing market will pick up soon. The S&P/Case-Shiller Home Price Index dropped 1.5% in the third quarter. Economists expected a 1.3% gain.
Outlook: Investors haven't been hunting for value opportunities among homebuilders. Pulte's stock has dropped 22% in three months. Of analysts covering Pulte, two recommend purchasing its shares and 17 advise holding them. None say to sell. A median target of $9.11 implies a 12-month return of 44%. Deutsche Bank (DB) and Barclays value Pulte at $10, suggesting the stock could rise 58%.
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