We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PulteGroup (PHM) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
In the latest trading session, PulteGroup (PHM - Free Report) closed at $44.78, marking a -0.67% move from the previous day. This change lagged the S&P 500's 0.1% gain on the day. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Coming into today, shares of the homebuilder had gained 6.3% in the past month. In that same time, the Construction sector lost 0.89%, while the S&P 500 lost 3.6%.
Investors will be hoping for strength from PulteGroup as it approaches its next earnings release, which is expected to be January 31, 2023. On that day, PulteGroup is projected to report earnings of $2.90 per share, which would represent year-over-year growth of 15.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.6 billion, up 5.62% from the year-ago period.
PHM's full-year Zacks Consensus Estimates are calling for earnings of $10.14 per share and revenue of $15.66 billion. These results would represent year-over-year changes of +38.9% and +12.46%, respectively.
It is also important to note the recent changes to analyst estimates for PulteGroup. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% lower. PulteGroup is currently a Zacks Rank #5 (Strong Sell).
In terms of valuation, PulteGroup is currently trading at a Forward P/E ratio of 4.45. This valuation marks a premium compared to its industry's average Forward P/E of 4.15.
Investors should also note that PHM has a PEG ratio of 2.57 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Home Builders was holding an average PEG ratio of 1.05 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 229, which puts it in the bottom 10% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
PulteGroup (PHM) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, PulteGroup (PHM - Free Report) closed at $44.78, marking a -0.67% move from the previous day. This change lagged the S&P 500's 0.1% gain on the day. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Coming into today, shares of the homebuilder had gained 6.3% in the past month. In that same time, the Construction sector lost 0.89%, while the S&P 500 lost 3.6%.
Investors will be hoping for strength from PulteGroup as it approaches its next earnings release, which is expected to be January 31, 2023. On that day, PulteGroup is projected to report earnings of $2.90 per share, which would represent year-over-year growth of 15.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.6 billion, up 5.62% from the year-ago period.
PHM's full-year Zacks Consensus Estimates are calling for earnings of $10.14 per share and revenue of $15.66 billion. These results would represent year-over-year changes of +38.9% and +12.46%, respectively.
It is also important to note the recent changes to analyst estimates for PulteGroup. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% lower. PulteGroup is currently a Zacks Rank #5 (Strong Sell).
In terms of valuation, PulteGroup is currently trading at a Forward P/E ratio of 4.45. This valuation marks a premium compared to its industry's average Forward P/E of 4.15.
Investors should also note that PHM has a PEG ratio of 2.57 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Home Builders was holding an average PEG ratio of 1.05 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 229, which puts it in the bottom 10% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.