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PulteGroup (PHM) Gains As Market Dips: What You Should Know

PulteGroup (PHM) closed the most recent trading day at $60.90, moving +0.94% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.67%.

The company is expected to report EPS of $1.73, up 50.43% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.53 billion, up 36% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.62 per share and revenue of $14.9 billion, which would represent changes of +47.1% and +35.02%, respectively, from the prior year.

Any recent changes to analyst estimates for PHM should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 24% higher. PHM is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, PHM is currently trading at a Forward P/E ratio of 7.92. This valuation marks a discount compared to its industry's average Forward P/E of 9.64.

It is also worth noting that PHM currently has a PEG ratio of 0.83. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PHM's industry had an average PEG ratio of 0.74 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 34, which puts it in the top 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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