NEW YORK (TheStreet) -- Shares of PulteGroup (PHM) stock closed higher by 1.30% to $20.25 on Monday afternoon, as some home builder stocks got a boost thanks to recent exiting homes data, which showed a greater than expected improvement in May.
Existing home sales grew by 5.1% in May from April to a seasonally adjusted rate of 5.35 million, the National Association of Realtors said today.
Economists polled by The Wall Street Journal were expecting May sales would grow by 4.2% to a pace of 5.25 million.
"We're moving back toward a more normal housing market," Stephen Stanley, chief economist at Amherst Pierpont Securities told The Journal.
Sales in May jumped as young and first time buyers found their way into the market, following a long struggle, The Journal noted.
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 some important positives, 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, reasonable valuation levels and increase in stock price during the past year. We feel its strengths outweigh the fact that the company has had sub par growth in net income."