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

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PulteGroup (PHM - Free Report) closed at $57.79 in the latest trading session, marking a -0.16% move from the prior day. This change lagged the S&P 500's daily gain of 0.08%.

Prior to today's trading, shares of the homebuilder had lost 3.23% over the past month. This has lagged the Construction sector's gain of 0.31% and the S&P 500's gain of 0.41% in that time.

Investors will be hoping for strength from PHM as it approaches its next earnings release. In that report, analysts expect PHM to post earnings of $1.73 per share. This would mark year-over-year growth of 50.43%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.53 billion, up 36% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.68 per share and revenue of $14.9 billion, which would represent changes of +48.26% and +35.02%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for PHM. 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. 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, 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 25.53% higher. PHM currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, PHM is holding a Forward P/E ratio of 7.54. Its industry sports an average Forward P/E of 8.56, so we one might conclude that PHM is trading at a discount comparatively.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% 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.

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