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PulteGroup (PHM) Declines More Than Market: Some Information for Investors

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The latest trading session saw PulteGroup (PHM - Free Report) ending at $106.43, denoting a -0.4% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.17%. On the other hand, the Dow registered a loss of 0.06%, and the technology-centric Nasdaq decreased by 0.55%.

Prior to today's trading, shares of the homebuilder had gained 1.24% over the past month. This has lagged the Construction sector's gain of 8.85% and the S&P 500's gain of 3.98% in that time.

The investment community will be paying close attention to the earnings performance of PulteGroup in its upcoming release. The company is slated to reveal its earnings on April 23, 2024. The company is forecasted to report an EPS of $2.36, showcasing a 0.43% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.59 billion, up 0.37% from the year-ago period.

PHM's full-year Zacks Consensus Estimates are calling for earnings of $11.77 per share and revenue of $16.89 billion. These results would represent year-over-year changes of +0.43% and +5.15%, respectively.

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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.53% higher. PulteGroup presently features a Zacks Rank of #3 (Hold).

Digging into valuation, PulteGroup currently has a Forward P/E ratio of 9.08. Its industry sports an average Forward P/E of 9.08, so one might conclude that PulteGroup is trading at no noticeable deviation comparatively.

We can also see that PHM currently has a PEG ratio of 0.72. 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. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 0.82 based on yesterday's closing prices.

The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 27, placing it within the top 11% of over 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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