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PulteGroup (PHM) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest trading session, PulteGroup (PHM - Free Report) closed at $117.08, marking a -4% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.36%. Meanwhile, the Dow experienced a drop of 1.64%, and the technology-dominated Nasdaq saw a decrease of 1.46%.

The homebuilder's stock has dropped by 13.86% in the past month, falling short of the Construction sector's loss of 9.81% and the S&P 500's loss of 1.76%.

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 April 23, 2026. It is anticipated that the company will report an EPS of $1.83, marking a 28.79% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.38 billion, indicating a 13.04% decrease compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.15 per share and a revenue of $16.5 billion, signifying shifts of -11.28% and -4.68%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for PulteGroup. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.45% higher. 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 12.02. This valuation marks a discount compared to its industry average Forward P/E of 12.6.

It's also important to note that PHM currently trades at a PEG ratio of 1.42. 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 1.74.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 234, which puts it in the bottom 5% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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