BOSTON ( TheStreet) -- When Goldman Sachs (GS - Get Report) added homebuilder PulteGroup (PHM - Get Report) to its conviction buy list in March, the investment bank touted the stock as having return potential of 40%. Instead, investors are down 40% on the investment in less than six months.Goldman removed Pulte from its conviction buy list Tuesday as the bank recalibrated its housing forecasts due to weak job growth and volatile financial markets. Goldman analysts still rate Pulte buy as the company is in the early stages of a turnaround, but they argue that there is an increased likelihood of a goodwill impairment and limited catalysts.
Goldman's Conviction on Pulte Cost You 40%
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
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.