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What Should You Know About PulteGroup Inc’s (NYSE:PHM) Future?

The latest earnings release PulteGroup Inc’s (NYSE:PHM) announced in December 2017 revealed that the company endured a major headwind with earnings deteriorating by -25.98%. Below, I’ve presented key growth figures on how market analysts view PulteGroup’s earnings growth outlook over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. Check out our latest analysis for PulteGroup

Analysts’ expectations for next year seems optimistic, with earnings expanding by a significant 99.65%. This strong growth in earnings is expected to continue, bringing the bottom line up to US$1.11B by 2021.

NYSE:PHM Future Profit Apr 24th 18
NYSE:PHM Future Profit Apr 24th 18

Although it is helpful to be aware of the rate of growth each year relative to today’s value, it may be more valuable estimating the rate at which the business is growing on average every year. The pro of this technique is that it ignores near term flucuations and accounts for the overarching direction of PulteGroup’s earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 16.54%. This means, we can presume PulteGroup will grow its earnings by 16.54% every year for the next few years.

Next Steps:

For PulteGroup, there are three relevant factors you should look at:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

  2. Valuation: What is PHM worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether PHM is currently mispriced by the market.

  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of PHM? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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