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Why PulteGroup (PHM) Dipped More Than Broader Market Today

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The most recent trading session ended with PulteGroup (PHM - Free Report) standing at $108.79, reflecting a -1.89% shift from the previouse trading day's closing. This change lagged the S&P 500's 1.2% loss on the day. Elsewhere, the Dow saw a downswing of 0.65%, while the tech-heavy Nasdaq depreciated by 1.79%.

Shares of the homebuilder have depreciated by 0.01% over the course of the past month, outperforming the Construction sector's loss of 1.46% and the S&P 500's loss of 0.85%.

Investors will be eagerly watching for the performance of PulteGroup in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 23, 2024. The company's upcoming EPS is projected at $2.36, signifying a 0.43% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $3.59 billion, up 0.32% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.79 per share and a revenue of $16.9 billion, representing changes of +0.6% and +5.22%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for PulteGroup. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% higher. As of now, PulteGroup holds a Zacks Rank of #2 (Buy).

Looking at its valuation, PulteGroup is holding a Forward P/E ratio of 9.41. This expresses no noticeable deviation compared to the average Forward P/E of 9.41 of its industry.

It is also worth noting that PHM currently has a PEG ratio of 0.54. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 0.84 based on yesterday's closing prices.

The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 53, positioning it in the top 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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