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PulteGroup (PHM) Stock Jumps 7.3%: Will It Continue to Soar?

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PulteGroup (PHM - Free Report) shares ended the last trading session 7.3% higher at $132.2. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 3.5% loss over the past four weeks.

PulteGroup stock is expected to have jumped on the back of the recent optimism surrounding housing affordability improvements in the United States. The recent meeting of the U.S. Commerce Secretary Howard Lutnick with executives from major homebuilding companies highlighted the Trump administration’s efforts to address housing affordability concerns through necessary incentive offerings.

This homebuilder is expected to post quarterly earnings of $2.79 per share in its upcoming report, which represents a year-over-year change of -20.3%. Revenues are expected to be $4.31 billion, down 12.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For PulteGroup, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PHM going forward to see if this recent jump can turn into more strength down the road.

 

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

PulteGroup belongs to the Zacks Building Products - Home Builders industry. Another stock from the same industry, Century Communities (CCS - Free Report) , closed the last trading session 10.9% higher at $68.33. Over the past month, CCS has returned -2.8%.

Century Communities' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.39. Compared to the company's year-ago EPS, this represents a change of -60.2%. Century Communities currently boasts a Zacks Rank of #3 (Hold).


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