PulteGroup Inc. PHM is broadening its Del Webb brand with the launch of Del Webb Explore, a new lifestyle-focused home community designed to appeal to buyers of all ages. This move expands PHM’s reach beyond the traditional 55-plus demographic, addressing the growing demand for resort-style living among Gen X buyers.

Targeting the Gen X Market

Del Webb Explore caters to Gen X consumers—those aged 45-60 in 2025—who seek the luxurious, amenity-rich lifestyle traditionally associated with Del Webb communities but without the 55-plus age restriction. PulteGroup’s research revealed that 40% of potential Del Webb buyers desired the brand’s active lifestyle but did not meet the age criteria. This expansion allows PHM to serve a broader market while maintaining its reputation for high-quality, community-driven living.

Resort-Style Amenities Without Age Restrictions

The new Del Webb Explore communities will offer high-end amenities such as state-of-the-art clubhouses, premium fitness centers, zero-entry lagoon pools, pickleball courts, and walking trails. These features align with Gen X preferences, shaped by years of travel and an affinity for social, wellness-oriented lifestyles. The homes themselves will include open-concept designs, luxurious finishes, and flexible spaces for entertaining and multigenerational living.

PulteGroup’s Strategic Growth in Key Markets

The first Del Webb Explore communities are launching in Southern California and the Tampa Bay Area, with plans for nationwide expansion. The inaugural Del Webb Explore Palm Desert community, covering 71 acres with 332 units, opened sales on Feb. 15, 2025. Given PulteGroup’s historical success in the region, this marks a strategic return to a high-demand market.

A Growth Catalyst for PHM Stock

By diversifying the Del Webb brand, PHM strengthens its position in the homebuilding market. Expanding into Gen X demographics allows the company to capture new buyers while leveraging its expertise in master-planned communities. This innovation underscores PulteGroup’s ability to adapt to changing consumer needs, potentially driving long-term revenue growth and enhancing shareholder value.

As PHM taps into a younger luxury-seeking demographic, Del Webb Explore could become a significant contributor to the company’s future success.

PHM Stock Performance

PHM’s shares have lost 20.5%, given volatility and mixed industry data. This performance outperformed the Zacks Building Products - Home Builders industry’s 26.7% decline, as well as the broader Construction sector's 6.3% decrease and the Zacks S&P 500 Composite's 8.6% growth.
 

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This Zacks Rank #4 (Sell) company’s earnings per share (EPS) estimate for 2025 has declined to $12.32 from $13.34 over the past 30 days. The estimated figure indicates 16.1% growth from 2024.

PulteGroup’s prospects are primarily hurting due to the lingering affordability issues in the housing market, which are caused by a still high mortgage rate. To address this issue, the company is increasing its incentive offering activity, which, in turn, is pushing its cost and expense structure, pressurizing the margins. In the fourth quarter of 2024, its home sales gross margin was down 140 bps year over year to 27.5%.

Key Picks

Here are some better-ranked stocks from the Construction sector.

Sterling Infrastructure, Inc. STRL currently sports a Zacks Rank of 1 (Strong Buy). STRL delivered a trailing four-quarter earnings surprise of 16.2%, on average. The stock has gained 11.2% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for STRL’s 2025 sales indicates a decrease of 4.1% and an increase of 20.5% for EPS, respectively, from a year ago.

Gibraltar Industries, Inc. ROCK currently carries a Zacks Rank #2 (Buy). ROCK delivered a trailing four-quarter earnings surprise of 1.8%, on average. The stock has lost 1.4% in the past six months.

The Zacks Consensus Estimate for ROCK’s 2025 sales and EPS calls for an increase of 9.8% and 15.5%, respectively, from a year ago.

Hillman Solutions Corp. HLMN currently carries a Zacks Rank #2. HLMN delivered a trailing four-quarter earnings surprise of 7.6%, on average. The stock has lost 2.8% in the past six months.

The Zacks Consensus Estimate for HLMN’s 2025 sales and EPS calls for an increase of 4% and 18.4%, respectively, from a year ago.

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