Is PulteGroup (PHM) Outperforming Other Construction Stocks This Year?
For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. PulteGroup (PHM) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.
PulteGroup is a member of the Construction sector. This group includes 100 individual stocks and currently holds a Zacks Sector Rank of #1. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. PulteGroup is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for PHM's full-year earnings has moved 25.8% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, PHM has moved about 80% on a year-to-date basis. In comparison, Construction companies have returned an average of 33.7%. This means that PulteGroup is performing better than its sector in terms of year-to-date returns.
One other Construction stock that has outperformed the sector so far this year is Taylor Morrison Home (TMHC). The stock is up 70.2% year-to-date.
The consensus estimate for Taylor Morrison Home's current year EPS has increased 6.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, PulteGroup belongs to the Building Products - Home Builders industry, which includes 19 individual stocks and currently sits at #19 in the Zacks Industry Rank. On average, stocks in this group have gained 54.5% this year, meaning that PHM is performing better in terms of year-to-date returns. Taylor Morrison Home is also part of the same industry.
PulteGroup and Taylor Morrison Home could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
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PulteGroup, Inc. (PHM) : Free Stock Analysis Report
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