Back to top

Image: Bigstock

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

Read MoreHide Full Article

PulteGroup (PHM - Free Report) closed at $55.84 in the latest trading session, marking a -1.97% move from the prior day. This change lagged the S&P 500's daily loss of 0.18%.

Heading into today, shares of the homebuilder had lost 4.33% over the past month, lagging the Construction sector's loss of 4.29% and the S&P 500's gain of 0.04% in that time.

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. Our most recent consensus estimate is calling for quarterly revenue 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 might also notice recent changes to analyst estimates for PHM. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.72% higher. PHM is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, PHM is currently trading at a Forward P/E ratio of 7.42. This represents a discount compared to its industry's average Forward P/E of 8.

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 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.

To follow PHM in the coming trading sessions, be sure to utilize Zacks.com.


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