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PulteGroup (PHM) Suffers a Larger Drop Than the General Market: Key Insights

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The most recent trading session ended with PulteGroup (PHM - Free Report) standing at $120.69, reflecting a -1% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a loss of 0.54% for the day. Elsewhere, the Dow lost 0.53%, while the tech-heavy Nasdaq lost 0.66%.

Shares of the homebuilder witnessed a loss of 4.37% over the previous month, trailing the performance of the Construction sector with its loss of 3.56% and the S&P 500's gain of 1.5%.

The upcoming earnings release of PulteGroup will be of great interest to investors. The company's earnings report is expected on January 30, 2025. It is anticipated that the company will report an EPS of $3.21, marking a 2.13% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.64 billion, indicating an 8.17% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.42 per share and revenue of $17.67 billion. These totals would mark changes of +14.51% and +10.01%, respectively, from last 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 a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PulteGroup is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that PulteGroup has a Forward P/E ratio of 9.08 right now. Its industry sports an average Forward P/E of 9.02, so one might conclude that PulteGroup is trading at a premium comparatively.

It's also important to note that PHM currently trades at a PEG ratio of 0.48. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Building Products - Home Builders was holding an average PEG ratio of 0.69 at yesterday's closing price.

The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 144, this industry ranks in the bottom 43% of all industries, numbering over 250.

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.

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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