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PulteGroup (PHM) Falls More Steeply Than Broader Market: What Investors Need to Know

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PulteGroup (PHM - Free Report) closed the most recent trading day at $120.07, moving -3.52% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.58%. Elsewhere, the Dow saw a downswing of 1.18%, while the tech-heavy Nasdaq depreciated by 0.32%.

Coming into today, shares of the homebuilder had lost 4.31% in the past month. In that same time, the Construction sector lost 7.66%, while the S&P 500 lost 0.36%.

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 October 22, 2026. The company is expected to report EPS of $2.65, down 10.47% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $4.14 billion, indicating a 5.91% decrease compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.12 per share and revenue of $16.4 billion. These totals would mark changes of -11.54% and -5.29%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for PulteGroup. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.35% higher within the past month. PulteGroup is currently a Zacks Rank #3 (Hold).

Investors should also note PulteGroup's current valuation metrics, including its Forward P/E ratio of 12.3. This signifies a discount in comparison to the average Forward P/E of 13.59 for its industry.

One should further note that PHM currently holds a PEG ratio of 1.54. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. PHM's industry had an average PEG ratio of 2.68 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 38% of over 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.

To follow PHM in the coming trading sessions, be sure to utilize Zacks.com.

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