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PulteGroup (PHM) Declines More Than Market: Some Information for Investors

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PulteGroup (PHM - Free Report) ended the recent trading session at $114.63, demonstrating a -2.13% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 1.67%. Elsewhere, the Dow lost 1.73%, while the tech-heavy Nasdaq lost 2.15%.

Heading into today, shares of the homebuilder had lost 13.67% over the past month, lagging the Construction sector's loss of 11.84% and the S&P 500's loss of 6.15%.

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 April 23, 2026. The company is forecasted to report an EPS of $1.83, showcasing a 28.79% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.38 billion, down 13.04% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $10.15 per share and revenue of $16.5 billion, which would represent changes of -11.28% and -4.68%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for PulteGroup. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.45% higher. PulteGroup presently features a Zacks Rank of #4 (Sell).

From a valuation perspective, PulteGroup is currently exchanging hands at a Forward P/E ratio of 11.54. Its industry sports an average Forward P/E of 12.36, so one might conclude that PulteGroup is trading at a discount comparatively.

Investors should also note that PHM has a PEG ratio of 1.36 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.

The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 235, 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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