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

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PulteGroup (PHM - Free Report) closed at $47.88 in the latest trading session, marking a +1.66% move from the prior day. This move outpaced the S&P 500's daily gain of 0.95%.

Prior to today's trading, shares of the homebuilder had lost 12.11% over the past month. This has lagged the Construction sector's loss of 4.25% and the S&P 500's loss of 1.87% 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 $1.85 per share. This would mark year-over-year growth of 38.06%. Our most recent consensus estimate is calling for quarterly revenue of $3.56 billion, up 20.42% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.37 per share and revenue of $14.21 billion. These totals would mark changes of +42.28% and +28.76%, 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. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 4.19% lower. PHM currently has a Zacks Rank of #3 (Hold).

In terms of valuation, PHM is currently trading at a Forward P/E ratio of 6.39. Its industry sports an average Forward P/E of 6.52, so we one might conclude that PHM is trading at a discount comparatively.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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