NEW YORK (TheStreet) -- PulteGroup (PHM) shares are up 1.18% to $20.55 in trading on Wednesday as the home building industry continues its run of good news after Lennar (LEN) reported strong quarterly profits before the opening bell today.
Lennar, the country's second largest home builder, reported that new home orders rose 18% year over year in the second quarter as the company earned $183 million, or 79 cents per share, while generating $2.39 billion in revenue.
Analysts on average were expecting the company to earn 64 cents per share on revenue of $2.02 billion.
Lennar's results follow Monday's report that total existing home sales rose 5.1% in May to a seasonally adjusted annual rate of 5.35 million homes, according to the National Association of Realtors.
Year over year sales have increased for eight consecutive months.
Lennar shares are up 3.63% to $50.78 in trading today.
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."