Back to top

Image: Bigstock

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

Read MoreHide Full Article

PulteGroup (PHM - Free Report) closed the most recent trading day at $41.47, moving +1.97% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.69%. At the same time, the Dow lost 1.19%, and the tech-heavy Nasdaq gained 0.14%.

Heading into today, shares of the homebuilder had lost 12.33% over the past month, lagging the Construction sector's loss of 0.99% and the S&P 500's gain of 7.88% in that time.

PulteGroup will be looking to display strength as it nears its next earnings release, which 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, the Zacks Consensus Estimate for revenue is projecting net sales of $3.06 billion, up 11.94% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.12 per share and revenue of $16.54 billion, which would represent changes of +38.63% and +18.74%, respectively, from the prior year.

It is also important to note the 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, 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 remained stagnant within the past month. PulteGroup is currently a Zacks Rank #3 (Hold).

Investors should also note PulteGroup's current valuation metrics, including its Forward P/E ratio of 4.02. For comparison, its industry has an average Forward P/E of 3.93, which means PulteGroup is trading at a premium to the group.

Meanwhile, PHM's PEG ratio is currently 0.43. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Home Builders was holding an average PEG ratio of 0.37 at yesterday's closing price.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 176, putting it in the bottom 31% 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.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


PulteGroup, Inc. (PHM) - free report >>

Published in