YTD Performance: +164%
Once again, we turn back to the homebuilding sector. This time its PulteGroup (NYSE:PHM), which has soared a staggering 164%.
Pulte’s fundamentals aren’t as impressive as the other companies listed earlier, but the big reason for the turnaround here is that PHM stock was brutalized worse than many of its peers — and in fact, had been bleeding cash every quarter save one dating all the way back to 2007! But finally, in its most recent earnings report, PHM returned to profitability and forecast its first full-year profit since before the mortgage meltdown.
Granted, the stock still is down almost 50% from its 2007 highs and is roughly a third of where it was at its 2005 peak … but investors are now confident that PulteGroup has what it takes to survive.
The load off the back of PHM has resulted in a nearly 100% gain in the past three months alone, with new 52-week highs coming like clockwork.
Jeff Reeves is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” Write him at firstname.lastname@example.org or follow him on Twitter via@JeffReevesIP. As of this writing, he owned a long position in Apple.