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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 $130.67 in the latest trading session, marking a -2.24% move from the prior day. This change lagged the S&P 500's 0.53% loss on the day. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 1%.

The homebuilder's stock has climbed by 7.45% in the past month, exceeding the Construction sector's gain of 4.47% and the S&P 500's gain of 2.06%.

The investment community will be closely monitoring the performance of PulteGroup in its forthcoming earnings report. The company is scheduled to release its earnings 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. Meanwhile, our latest consensus estimate is calling for revenue of $4.31 billion, down 12.42% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.34 per share and a revenue of $17.01 billion, signifying shifts of -22.8% and 0%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for PulteGroup. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, PulteGroup boasts a Zacks Rank of #3 (Hold).

Investors should also note PulteGroup's current valuation metrics, including its Forward P/E ratio of 11.92. This represents a discount compared to its industry average Forward P/E of 12.31.

Investors should also note that PHM has a PEG ratio of 1.08 right now. 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. The Building Products - Home Builders was holding an average PEG ratio of 1.92 at yesterday's closing price.

The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 238, finds itself in the bottom 3% echelons of all 250+ industries.

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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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