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

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PulteGroup (PHM - Free Report) closed at $54.47 in the latest trading session, marking a +1.6% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.23%.

Heading into today, shares of the homebuilder had lost 7.23% over the past month, lagging the Construction sector's loss of 1.39% and the S&P 500's gain of 2.34% in that time.

Investors will be hoping for strength from PHM as it approaches its next earnings release. On that day, PHM is projected to report earnings of $1.73 per share, which would represent year-over-year growth of 50.43%. Meanwhile, our latest consensus estimate is calling for revenue of $3.53 billion, up 36% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.68 per share and revenue of $14.9 billion. These totals would mark changes of +48.26% and +35.02%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for PHM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PHM is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, PHM is holding a Forward P/E ratio of 6.99. This represents a no noticeable deviation compared to its industry's average Forward P/E of 6.99.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 21, putting it in the top 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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