PHM

NVR reported Q3 2026 earnings of $89.45 per share, down 20.4% YoY and missing estimates by 15.7%. The homebuilder faced margin compression (270 bps decline to 18.3%), lower settlements, and pricing pressure from affordability challenges.

However, backlog units grew 10% and mortgage banking profitability improved 7%, supporting a 3.6% stock jump. Peers PulteGroup and Lennar also reported weaker results, while United Rentals beat expectations with strong growth.

PulteGroup (PHM) reported Q3 2026 earnings of $2.53 per share, missing consensus estimates and declining 14.5% year-over-year. Revenues fell 9.8% to $3.97 billion, driven by lower home closings (down 8.7%), softer average selling prices, and margin compression to 24.8%.

While net new orders declined 6.5%, backlog improved 4.1% to 10,298 homes valued at $6.44 billion. The company faces persistent housing affordability challenges and rising mortgage rates.

PulteGroup reported Q3 2026 earnings of $2.53 per share, missing the consensus estimate of $2.63, with revenues of $3.97 billion also falling short of expectations. The company's stock has underperformed the S&P 500 by 17% year-to-date. With unfavorable estimate revisions, PulteGroup received a Zacks Rank #4 (Sell) rating, and the homebuilding industry ranks in the bottom 5% of all sectors.

PulteGroup (PHM) has attracted investor attention but faces headwinds. The homebuilder is expected to report declining earnings of $2.62 per share for the current quarter (-11.5% YoY) and $10.08 for the fiscal year (-11.9% YoY).

Revenue is also projected to decline 5.5% for the current fiscal year. The stock has underperformed the S&P 500 by 6.3% over the past month and carries a Zacks Rank #4 (Sell) rating, suggesting near-term underperformance.

PulteGroup (PHM) declined 2.2% on October 14, 2026, underperforming the S&P 500's 1.11% loss. The homebuilder has dropped 6.6% over the past month.

Analysts expect Q3 earnings of $2.62 per share (down 11.49% YoY) and revenue of $4.13 billion (down 6.17% YoY). For full-year 2026, earnings are projected at $10.08 per share (down 11.89%) with revenue of $16.36 billion (down 5.52%). PulteGroup carries a Zacks Rank of #4 (Sell) and trades at a Forward P/E of 11.07, below the industry average of 12.24.

PulteGroup (PHM) outperformed the broader market on October 6, 2026, closing up 1.86% versus the S&P 500's 0.58% gain. However, the stock has declined 8.41% over the past month.

Upcoming earnings on October 22 are expected to show a 11.15% EPS decline year-over-year to $2.63, with revenue projected at $4.12 billion (down 6.4%). The company carries a Zacks Rank of #3 (Hold) with a Forward P/E of 11.31, trading at a discount to its industry average.

PulteGroup (PHM), a homebuilder, is trending among investors but faces headwinds with a -7% return over the past month versus the S&P 500's +0.6% gain. The company is expected to report declining earnings (-11.2% YoY for current quarter and -11.9% for fiscal year) but shows recovery potential with +9.6% growth projected for next fiscal year. With a Zacks Rank #3 (Hold) rating and a B valuation grade indicating the stock trades at a discount to peers, PHM is expected to perform in line with the broader market in the near term.

PulteGroup (PHM) closed down 2.06% and has dropped 3.76% over the past month. The homebuilder faces headwinds with expected Q3 2026 earnings of $2.63 per share (down 11.15% YoY) and full-year earnings projected at $10.08 per share (down 11.89% YoY).

The stock carries a Zacks Rank #3 (Hold) rating with a Forward P/E of 11.76, trading at a discount to its industry average. The Building Products - Home Builders industry ranks in the bottom 5% of all industries.

Rising Treasury yields have pushed mortgage rates above 7%, the highest in over two years, severely impacting homebuilders. The iShares U.S. Home Construction ETF is down 9.9% in the past month, with major holdings like D.R. Horton, PulteGroup, and Lennar all declining significantly. Multiple factors including energy prices, growing U.S. debt, and tech company bond issuance suggest yields will remain elevated, making homebuilder stocks unattractive near-term investments.

M/I Homes reported quarterly earnings of $2.7 per share, missing consensus estimates of $3.05 and falling from $4.14 a year ago. The company also missed revenue expectations at $1.08 billion.

With unfavorable estimate revisions, M/I Homes received a Zacks Rank #5 (Strong Sell) rating. The homebuilding industry ranks in the bottom 5% of Zacks industries, suggesting broader sector weakness.

The iShares U.S. Home Construction ETF (ITB) is reviewed as a passively managed fund tracking the home construction sector with $2.56 billion in assets. However, it receives a Zacks ETF Rank of 4 (Sell) due to high risk (beta of 1.27), concentrated holdings, and poor year-to-date performance of -9.15%. Better alternatives include Vanguard Consumer Discretionary Index Fund (VCR) and State Street Consumer Discretionary Select Sector SPDR ETF (XLY), which offer lower expense ratios and broader diversification.

Lennar Corporation is pursuing a volume-first strategy to navigate persistent housing affordability challenges, with home-sale revenues declining 7% and ASP dropping 5% through August 2026. Despite margin compression, the company achieved meaningful operational gains including 6% construction cost reductions and record 116-day cycle times. With mortgage rates at 7.28%, Lennar expects Q4 deliveries of 22,000-23,000 homes and gross margins of 15.5-16%, betting that cost efficiency and faster production will pay off if affordability improves.

Lennar Corporation (LEN) has significantly underperformed the broader market, declining 22.4% year-to-date amid persistent housing market challenges. The homebuilder faces elevated mortgage rates, affordability constraints, and increased competition from resale inventory.

Fiscal 2026 results show home-sales revenues fell 7% with deliveries down 2% and average selling price declining 5%. Gross margins contracted sharply to 15.5% from 18%, while the company reduced its full-year delivery target to 80,000-81,000 homes. With fiscal 2026 EPS expected to decline 38.6% and the stock trading at a premium valuation relative to peers, analysts recommend avoiding the stock until market conditions improve.