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PulteGroup (PHM) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, PulteGroup (PHM - Free Report) closed at $53.56, marking a -1.22% move from the previous day. This change lagged the S&P 500's daily loss of 0.53%.

Coming into today, shares of the homebuilder had gained 12.37% in the past month. In that same time, the Construction sector gained 8.12%, while the S&P 500 gained 5.72%.

Investors will be hoping for strength from PHM as it approaches its next earnings release, which is expected to be April 27, 2021. On that day, PHM is projected to report earnings of $1.19 per share, which would represent year-over-year growth of 60.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.83 billion, up 23.46% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.11 per share and revenue of $13.54 billion. These totals would mark changes of +17.95% and +22.64%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for PHM. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 has moved 0.5% lower. PHM is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, PHM currently has a Forward P/E ratio of 8.87. This represents a discount compared to its industry's average Forward P/E of 9.65.

We can also see that PHM currently has a PEG ratio of 0.93. 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 industry currently had an average PEG ratio of 0.81 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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