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%.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts