NEW YORK (TheStreet) --Shares of PulteGroup (PHM) are up by 1.06% to $19.48 in mid-afternoon trading on Monday, as the home builder sector gets a boost from the rise in home builder confidence and from the announcement that Ryland (RYL) and Standard Specific (SPF) are merging.
The combination of the two companies will create the fourth largest home builder in the U.S.
The National Association of Home Builders/Wells Fargo data showed confidence among home builders spiked by five points to 59 in June, a nine-month high, MarketWatch reports.
Economists were expecting the confidence gauge to show a reading of 55.
Readings above the 50 mark indicate that home builders are encouraged by current sales trends.
PulteGroup is an Atlanta, GA.-based company with a focus on home design, construction, and sales. The company also offers mortgage banking services.
Separately, TheStreet Ratings team rates PULTEGROUP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate PULTEGROUP INC (PHM) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel its strengths outweigh the fact that the company has had sub par growth in net income."