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PulteGroup (PHM) Dips More Than Broader Market: What You Should Know

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PulteGroup (PHM - Free Report) closed at $103.42 in the latest trading session, marking a -1.53% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.27%.

Coming into today, shares of the homebuilder had lost 1.33% in the past month. In that same time, the Construction sector gained 3.59%, while the S&P 500 gained 6.9%.

Market participants will be closely following the financial results of PulteGroup in its upcoming release. The company plans to announce its earnings on July 22, 2025. On that day, PulteGroup is projected to report earnings of $2.94 per share, which would represent a year-over-year decline of 17.88%. In the meantime, our current consensus estimate forecasts the revenue to be $4.39 billion, indicating a 4.52% decline compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.48 per share and revenue of $17.24 billion, indicating changes of -21.85% and -3.95%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for PulteGroup. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, PulteGroup holds a Zacks Rank of #4 (Sell).

From a valuation perspective, PulteGroup is currently exchanging hands at a Forward P/E ratio of 9.15. Its industry sports an average Forward P/E of 9.77, so one might conclude that PulteGroup is trading at a discount comparatively.

Investors should also note that PHM has a PEG ratio of 0.31 right now. 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 industry had an average PEG ratio of 1.82 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 220, placing it within the bottom 11% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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