Atlanta, Georgia-based PulteGroup, Inc. (PHM) engages in the homebuilding business. Valued at $21.1 billion by market cap, the company sells and constructs homes, and purchases, develops, and sells residential land and develops active adult communities. PHM also provides mortgage financing, title insurance, and other services to home buyers. The homebuilding powerhouse is expected to announce its fiscal second-quarter earnings for 2025before the market opens on Tuesday, Jul. 22.

Ahead of the event, analysts expect PHM to report a profit of $2.94 per share on a diluted basis, down 17.9% from $3.58 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.

For the full year, analysts expect PHM to report EPS of $11.48, down 13.6% from $13.28 in fiscal 2024. However, its EPS is expected to rise 5.5% year over year to $12.11 in fiscal 2026.

PHM stock has underperformed the S&P 500 Index’s ($SPX) 13.6% gains over the past 52 weeks, with shares down 4.2% during this period. Similarly, it underperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 19.2% gains over the same time frame.

PHM is underperforming due to slowing growth prospects and challenges in the housing industry, such as high interest rates and soaring home prices. Consumer desire for homeownership is strong, but affordability remains a concern. Existing-home sales have dropped, indicating broader market weakness. Economic uncertainty, including trade conflicts and tariff threats from President Trump, is impacting consumer sentiment and borrowing costs, potentially dampening housing demand.

On Apr. 22, PHM shares closed up more than 8% after reporting its Q1 results. Its EPS of $2.57 topped Wall Street expectations of $2.47. The company’s revenue was $3.89 billion, surpassing Wall Street forecasts of $3.86 billion.

Analysts’ consensus opinion on PHM stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 16 analysts covering the stock, nine advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and six give a “Hold.” PHM’s average analyst price target is $123.77, indicating a potential upside of 17.4% from the current levels.