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

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In the latest trading session, PulteGroup (PHM - Free Report) closed at $43.67, marking a -0.3% move from the previous day. This change lagged the S&P 500's 0.71% gain on the day. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.33%.

Coming into today, shares of the homebuilder had lost 9.99% in the past month. In that same time, the Construction sector lost 1.22%, while the S&P 500 gained 3.76%.

Wall Street will be looking for positivity from PulteGroup as it approaches its next earnings report date. This is expected to be April 28, 2022. On that day, PulteGroup is projected to report earnings of $1.71 per share, which would represent year-over-year growth of 33.59%. Meanwhile, our latest consensus estimate is calling for revenue of $3.06 billion, up 11.94% from the prior-year quarter.

PHM's full-year Zacks Consensus Estimates are calling for earnings of $10.12 per share and revenue of $16.54 billion. These results would represent year-over-year changes of +38.63% and +18.74%, respectively.

Investors might also notice recent changes to analyst estimates for PulteGroup. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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 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. PulteGroup currently has a Zacks Rank of #2 (Buy).

In terms of valuation, PulteGroup is currently trading at a Forward P/E ratio of 4.33. For comparison, its industry has an average Forward P/E of 4.11, which means PulteGroup is trading at a premium to the group.

We can also see that PHM currently has a PEG ratio of 0.47. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Home Builders industry currently had an average PEG ratio of 0.4 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 58, putting it in the top 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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