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Why PulteGroup (PHM) Dipped More Than Broader Market Today

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In the latest close session, PulteGroup (PHM - Free Report) was down 3.61% at $98.72. The stock's change was less than the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.7%, while the tech-heavy Nasdaq lost 0.91%.

Coming into today, shares of the homebuilder had lost 1.91% in the past month. In that same time, the Construction sector gained 0%, while the S&P 500 gained 1.44%.

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 July 22, 2025. The company is forecasted to report an EPS of $2.94, showcasing a 17.88% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $4.39 billion, down 4.52% from the prior-year quarter.

PHM's full-year Zacks Consensus Estimates are calling for earnings of $11.48 per share and revenue of $17.24 billion. These results would represent year-over-year changes of -21.85% and -3.95%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 remained steady. Right now, PulteGroup possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, PulteGroup is currently exchanging hands at a Forward P/E ratio of 8.92. This represents a discount compared to its industry average Forward P/E of 9.29.

Also, we should mention that PHM has a PEG ratio of 0.3. 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 1.77 at yesterday's closing price.

The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 224, this industry ranks in the bottom 9% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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