Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, PulteGroup (PHM - Free Report) closed at $56.31, marking a -1.83% move from the previous day. This change lagged the S&P 500's daily loss of 0.36%.

Coming into today, shares of the homebuilder had lost 6.15% in the past month. In that same time, the Construction sector gained 0.13%, while the S&P 500 gained 0.75%.

PHM will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.73, up 50.43% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.53 billion, up 36% from the prior-year quarter.

PHM's full-year Zacks Consensus Estimates are calling for earnings of $7.68 per share and revenue of $14.9 billion. These results would represent year-over-year changes of +48.26% and +35.02%, respectively.

Investors should also note any recent changes to analyst estimates for PHM. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.72% higher within the past month. PHM is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, PHM is currently trading at a Forward P/E ratio of 7.47. Its industry sports an average Forward P/E of 8.05, 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 group has a Zacks Industry Rank of 19, putting it in the top 8% 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.

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

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

PulteGroup, Inc. (PHM) - free report >>

Published in