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

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In the latest trading session, PulteGroup (PHM - Free Report) closed at $54.21, marking a +1.27% move from the previous day. This move outpaced the S&P 500's daily loss of 0.2%.

Heading into today, shares of the homebuilder had lost 7.69% over the past month, lagging the Construction sector's loss of 4.96% and the S&P 500's gain of 2.11% in that time.

PHM will be looking to display strength as it nears 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.

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 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.72% higher. PHM is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, PHM is currently trading at a Forward P/E ratio of 6.97. This represents a discount compared to its industry's average Forward P/E of 7.55.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 8, which puts it in the top 4% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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