PulteGroup (PHM) Dips More Than Broader Markets: What You Should Know
PulteGroup (PHM) closed the most recent trading day at $52.37, moving -1.37% from the previous trading session. This move lagged the S&P 500's daily loss of 1.1%. Meanwhile, the Dow lost 0.89%, and the Nasdaq, a tech-heavy index, added 0.03%.
Prior to today's trading, shares of the homebuilder had lost 2.64% over the past month. This has was narrower than the Construction sector's loss of 6.54% and lagged the S&P 500's loss of 1.81% in that time.
Investors will be hoping for strength from PulteGroup as it approaches its next earnings release, which is expected to be February 1, 2022. On that day, PulteGroup is projected to report earnings of $2.29 per share, which would represent year-over-year growth of 53.69%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.16 billion, up 30.43% from the year-ago period.
It is also important to note the recent changes 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 company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.65% higher. PulteGroup is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, PulteGroup is holding a Forward P/E ratio of 6.03. This represents a premium compared to its industry's average Forward P/E of 5.37.
It is also worth noting that PHM currently has a PEG ratio of 0.25. 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 0.25 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 36, putting it in the top 15% of all 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.
To follow PHM in the coming trading sessions, be sure to utilize Zacks.com.
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