PulteGroup (PHM) Gains But Lags Market: What You Should Know
PulteGroup (PHM) closed the most recent trading day at $55.82, moving +0.83% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.3%. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 7.48%.
Coming into today, shares of the homebuilder had gained 1.95% in the past month. In that same time, the Construction sector lost 4.35%, while the S&P 500 lost 2.95%.
Investors will be hoping for strength from PulteGroup as it approaches its next earnings release, which is expected to be April 25, 2023. On that day, PulteGroup is projected to report earnings of $1.78 per share, which would represent a year-over-year decline of 2.73%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.27 billion, up 2.52% from the year-ago period.
PHM's full-year Zacks Consensus Estimates are calling for earnings of $7.34 per share and revenue of $14.09 billion. These results would represent year-over-year changes of -32.04% and -13.17%, respectively.
Investors might also notice recent changes to analyst estimates for PulteGroup. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.83% higher within the past month. PulteGroup is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that PulteGroup has a Forward P/E ratio of 7.54 right now. This represents a discount compared to its industry's average Forward P/E of 8.56.
It is also worth noting that PHM currently has a PEG ratio of 0.47. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Home Builders was holding an average PEG ratio of 0.66 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 64, putting it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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PulteGroup, Inc. (PHM) : Free Stock Analysis Report
