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PulteGroup (PHM) Gains As Market Dips: What You Should Know

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PulteGroup (PHM) closed the most recent trading day at $44.33, moving +0.61% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.67%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Heading into today, shares of the homebuilder had gained 10.48% over the past month, outpacing the Construction sector's loss of 4.58% and the S&P 500's loss of 1.89% in that time.

Investors will be hoping for strength from PulteGroup as it approaches its next earnings release, which is expected to be July 26, 2022. In that report, analysts expect PulteGroup to post earnings of $2.59 per share. This would mark year-over-year growth of 50.58%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.06 billion, up 20.83% from the year-ago period.

PHM's full-year Zacks Consensus Estimates are calling for earnings of $10.65 per share and revenue of $16.75 billion. These results would represent year-over-year changes of +45.89% and +20.28%, respectively.

Any recent changes to analyst estimates for PulteGroup should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.59% lower. PulteGroup is currently a Zacks Rank #4 (Sell).

Digging into valuation, PulteGroup currently has a Forward P/E ratio of 4.14. This valuation marks a premium compared to its industry's average Forward P/E of 3.54.

Meanwhile, PHM's PEG ratio is currently 0.68. 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. PHM's industry had an average PEG ratio of 0.52 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 231, which puts it in the bottom 9% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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

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