Pulte Group (PHM) is the nation's largest homebuilder after the company acquired Centex for $1.3 billion in 2009.
Pulte's shares are up 23% in the past three months, although they're down 27% on the year. The company has a $2 billion market valuation.S&P's analysts have Pulte rated "buy" and forecast that revenue will decline 12% this year and rise 9% in 2012 in an expected housing market recovery. That means Pulte "will be able to gain market share as the housing market slowly recovers." Morningstar analysts also sound bullish, saying "Pulte's massive scale should, theoretically, provide major opportunities to leverage sourcing, marketing and administrative costs in a rising sales environment. "Further, the company's active, adult-oriented Del Webb division should benefit from a secular boom in retirement among baby boomers over the coming years. This ramp in business activity should propel Pulte's results solidly into the black," said the Morningstar report.
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