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

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In the latest trading session, PulteGroup (PHM - Free Report) closed at $59, marking a +1.24% move from the previous day. This change outpaced the S&P 500's 0.37% gain on the day. Elsewhere, the Dow gained 0.98%, while the tech-heavy Nasdaq added 0.62%.

Heading into today, shares of the homebuilder had gained 5.6% over the past month, outpacing the Construction sector's gain of 0.66% and the S&P 500's gain of 3.71% in that time.

Wall Street will be looking for positivity from PulteGroup as it approaches its next earnings report date. This is expected to be April 25, 2023. On that day, PulteGroup is projected to report earnings of $2.82 per share, which would represent year-over-year growth of 54.1%. Meanwhile, our latest consensus estimate is calling for revenue of $3.27 billion, up 2.52% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.52 per share and revenue of $14.09 billion, which would represent changes of -30.37% and -13.17%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for PulteGroup. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 has moved 2.48% higher. PulteGroup is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, PulteGroup is currently trading at a Forward P/E ratio of 7.75. For comparison, its industry has an average Forward P/E of 8.54, which means PulteGroup is trading at a discount to the group.

It is also worth noting that PHM currently has a PEG ratio of 0.48. 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. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 0.69 based on yesterday's closing prices.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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