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

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In the latest trading session, PulteGroup (PHM - Free Report) closed at $43.91, marking a +0.5% move from the previous day. This move outpaced the S&P 500's daily loss of 0.06%. Elsewhere, the Dow gained 0.72%, while the tech-heavy Nasdaq added 0.47%.

Heading into today, shares of the homebuilder had lost 5.82% over the past month, outpacing the Construction sector's loss of 6.53% and lagging the S&P 500's gain of 0.17% 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%. Our most recent consensus estimate is calling for quarterly revenue of $3.06 billion, up 11.94% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.12 per share and revenue of $16.54 billion. These totals would mark changes of +38.63% and +18.74%, respectively, from last year.

Any recent changes to analyst estimates for PulteGroup should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that PulteGroup has a Forward P/E ratio of 4.32 right now. For comparison, its industry has an average Forward P/E of 4.32, which means PulteGroup is trading at a no noticeable deviation to the group.

Meanwhile, PHM's PEG ratio is currently 0.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PHM's industry had an average PEG ratio of 0.39 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 218, which puts it in the bottom 14% 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.

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