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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 $45.30, marking a +0.4% move from the previous day. This move lagged the S&P 500's daily gain of 0.95%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq lost 0.28%.

Prior to today's trading, shares of the homebuilder had gained 5.74% over the past month. This has outpaced the Construction sector's gain of 2.83% and the S&P 500's gain of 0.1% in that time.

Wall Street will be looking for positivity from PulteGroup as it approaches its next earnings report date. In that report, analysts expect PulteGroup to post earnings of $2.59 per share. This would mark year-over-year growth of 50.58%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.06 billion, up 20.83% from the year-ago period.

PHM's full-year Zacks Consensus Estimates are calling for earnings of $10.72 per share and revenue of $16.75 billion. These results would represent year-over-year changes of +46.85% and +20.28%, respectively.

Investors should also note any recent changes to analyst estimates for PulteGroup. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. PulteGroup currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that PulteGroup has a Forward P/E ratio of 4.21 right now. For comparison, its industry has an average Forward P/E of 3.97, which means PulteGroup is trading at a premium to the group.

We can also see that PHM currently has a PEG ratio of 0.7. 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 0.44 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 44, putting it in the top 18% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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