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PulteGroup (PHM) Gains But Lags Market: What You Should Know

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PulteGroup (PHM - Free Report) closed the most recent trading day at $54.20, moving +0.99% from the previous trading session. This change lagged the S&P 500's 1.4% gain on the day.

Prior to today's trading, shares of the homebuilder had lost 3.77% over the past month. This has was narrower than the Construction sector's loss of 5.18% and lagged the S&P 500's gain of 1.07% in that time.

Investors will be hoping for strength from PHM as it approaches its next earnings release. The company is expected to report EPS of $1.73, up 50.43% from the prior-year quarter. 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 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. PHM is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, PHM is holding a Forward P/E ratio of 6.99. This represents a discount compared to its industry's average Forward P/E of 7.46.

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 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.

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


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