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Are Investors Undervaluing PulteGroup (PHM) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is PulteGroup (PHM - Free Report) . PHM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 9.87. This compares to its industry's average Forward P/E of 11.13. Over the past 52 weeks, PHM's Forward P/E has been as high as 10.07 and as low as 6.02, with a median of 7.99.
Investors will also notice that PHM has a PEG ratio of 0.78. 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 currently sports an average PEG of 0.83. PHM's PEG has been as high as 0.80 and as low as 0.21, with a median of 0.52, all within the past year.
Finally, our model also underscores that PHM has a P/CF ratio of 9.52. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.11. PHM's P/CF has been as high as 9.70 and as low as 4.72, with a median of 6.34, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that PulteGroup is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PHM feels like a great value stock at the moment.
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Are Investors Undervaluing PulteGroup (PHM) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is PulteGroup (PHM - Free Report) . PHM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 9.87. This compares to its industry's average Forward P/E of 11.13. Over the past 52 weeks, PHM's Forward P/E has been as high as 10.07 and as low as 6.02, with a median of 7.99.
Investors will also notice that PHM has a PEG ratio of 0.78. 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 currently sports an average PEG of 0.83. PHM's PEG has been as high as 0.80 and as low as 0.21, with a median of 0.52, all within the past year.
Finally, our model also underscores that PHM has a P/CF ratio of 9.52. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.11. PHM's P/CF has been as high as 9.70 and as low as 4.72, with a median of 6.34, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that PulteGroup is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PHM feels like a great value stock at the moment.