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PulteGroup (PHM) Gains But Lags Market: What You Should Know

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In the latest trading session, PulteGroup (PHM - Free Report) closed at $53.83, marking a +0.32% move from the previous day. This change lagged the S&P 500's 1.44% gain on the day.

Prior to today's trading, shares of the homebuilder had gained 16.92% over the past month. This has outpaced the Construction sector's gain of 10.15% and the S&P 500's gain of 6.26% in that time.

Wall Street will be looking for positivity from PHM as it approaches its next earnings report date. This is expected to be April 27, 2021. In that report, analysts expect PHM to post earnings of $1.20 per share. This would mark year-over-year growth of 62.16%. Meanwhile, our latest consensus estimate is calling for revenue of $2.91 billion, up 26.75% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.15 per share and revenue of $13.64 billion. These totals would mark changes of +18.73% and +23.56%, respectively, from last year.

Any recent changes to analyst estimates for PHM should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PHM is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that PHM has a Forward P/E ratio of 8.7 right now. For comparison, its industry has an average Forward P/E of 9.42, which means PHM is trading at a discount to the group.

Meanwhile, PHM's PEG ratio is currently 0.92. 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. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 0.78 based on yesterday's closing prices.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 27, which puts it in the top 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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