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PulteGroup (PHM) Outpaces Stock Market Gains: What You Should Know

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PulteGroup (PHM - Free Report) ended the recent trading session at $119.07, demonstrating a +1.54% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.19%. Meanwhile, the Dow gained 0.66%, and the Nasdaq, a tech-heavy index, lost 0.03%.

Heading into today, shares of the homebuilder had lost 8.31% over the past month, lagging the Construction sector's loss of 2.51% and the S&P 500's gain of 0.54%.

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 January 29, 2026. The company's earnings per share (EPS) are projected to be $2.79, reflecting a 20.29% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $4.31 billion, reflecting a 12.42% fall from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.34 per share and revenue of $17.01 billion, indicating changes of -22.8% and 0%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for PulteGroup. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, PulteGroup boasts a Zacks Rank of #4 (Sell).

From a valuation perspective, PulteGroup is currently exchanging hands at a Forward P/E ratio of 10.45. This expresses a discount compared to the average Forward P/E of 12.2 of its industry.

It's also important to note that PHM currently trades at a PEG ratio of 0.95. 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. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 1.71.

The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 233, placing it within the bottom 5% of over 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.

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


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