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

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PulteGroup (PHM - Free Report) closed at $53.39 in the latest trading session, marking a -1.49% move from the prior day. This change lagged the S&P 500's 0.03% loss on the day.

Prior to today's trading, shares of the homebuilder had gained 1.33% over the past month. This has lagged the Construction sector's gain of 3.77% and the S&P 500's gain of 3.59% in that time.

Investors will be hoping for strength from PHM as it approaches its next earnings release. In that report, analysts expect PHM to post earnings of $1.98 per share. This would mark year-over-year growth of 47.76%. Our most recent consensus estimate is calling for quarterly revenue of $3.66 billion, up 23.77% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.69 per share and revenue of $14.56 billion. These totals would mark changes of +48.46% and +31.92%, respectively, from last year.

Any recent changes to analyst estimates for PHM should also be noted by investors. 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.

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.

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 remained stagnant within the past month. PHM currently has a Zacks Rank of #3 (Hold).

Digging into valuation, PHM currently has a Forward P/E ratio of 7.05. This valuation marks a premium compared to its industry's average Forward P/E of 7.01.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% 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.

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