We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Value Investors Buy PulteGroup (PHM) Stock?
Read MoreHide Full Article
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is PulteGroup (PHM - Free Report) . PHM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.99, which compares to its industry's average of 10.82. Over the past year, PHM's Forward P/E has been as high as 9.25 and as low as 4.50, with a median of 7.60.
Investors should also note that PHM holds a PEG ratio of 0.30. 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. PHM's PEG compares to its industry's average PEG of 0.66. Within the past year, PHM's PEG has been as high as 4.10 and as low as 0.21, with a median of 0.49.
Finally, we should also recognize that PHM has a P/CF ratio of 7.95. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.09. Over the past 52 weeks, PHM's P/CF has been as high as 8.08 and as low as 3.86, with a median of 5.67.
Another great Building Products - Home Builders stock you could consider is Taylor Morrison Home (TMHC - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Furthermore, Taylor Morrison Home holds a P/B ratio of 1.11 and its industry's price-to-book ratio is 1.67. TMHC's P/B has been as high as 1.13, as low as 0.71, with a median of 0.94 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that PulteGroup and Taylor Morrison Home are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PHM and TMHC feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy PulteGroup (PHM) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is PulteGroup (PHM - Free Report) . PHM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.99, which compares to its industry's average of 10.82. Over the past year, PHM's Forward P/E has been as high as 9.25 and as low as 4.50, with a median of 7.60.
Investors should also note that PHM holds a PEG ratio of 0.30. 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. PHM's PEG compares to its industry's average PEG of 0.66. Within the past year, PHM's PEG has been as high as 4.10 and as low as 0.21, with a median of 0.49.
Finally, we should also recognize that PHM has a P/CF ratio of 7.95. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.09. Over the past 52 weeks, PHM's P/CF has been as high as 8.08 and as low as 3.86, with a median of 5.67.
Another great Building Products - Home Builders stock you could consider is Taylor Morrison Home (TMHC - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Furthermore, Taylor Morrison Home holds a P/B ratio of 1.11 and its industry's price-to-book ratio is 1.67. TMHC's P/B has been as high as 1.13, as low as 0.71, with a median of 0.94 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that PulteGroup and Taylor Morrison Home are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PHM and TMHC feels like a great value stock at the moment.