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

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In the latest trading session, PulteGroup (PHM - Free Report) closed at $46.53, marking a +0.61% move from the previous day. This move lagged the S&P 500's daily gain of 1.05%.

Coming into today, shares of the homebuilder had lost 13.37% in the past month. In that same time, the Construction sector lost 7.65%, while the S&P 500 lost 5.07%.

PHM will be looking to display strength as it nears its next earnings release, which is expected to be October 26, 2021. On that day, PHM is projected to report earnings of $1.85 per share, which would represent year-over-year growth of 38.06%. Meanwhile, our latest consensus estimate is calling for revenue of $3.56 billion, up 20.42% from the prior-year quarter.

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.

It is also important to note the recent changes to analyst estimates for PHM. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, 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 has moved 4.19% lower within the past month. PHM is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that PHM has a Forward P/E ratio of 6.28 right now. This valuation marks a discount compared to its industry's average Forward P/E of 6.5.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% 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.

To follow PHM in the coming trading sessions, be sure to utilize Zacks.com.


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