PulteGroup (PHM) Stock Sinks As Market Gains: Here's Why
PulteGroup (PHM) closed the latest trading day at $102.36, indicating a -1.2% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.08%. Elsewhere, the Dow saw a downswing of 0.26%, while the tech-heavy Nasdaq appreciated by 0.36%.
Prior to today's trading, shares of the homebuilder had gained 0.41% over the past month. This has outpaced the Construction sector's loss of 2.24% and lagged the S&P 500's gain of 2.4% in that time.
The investment community will be closely monitoring the performance of PulteGroup in its forthcoming earnings report. The company is scheduled to release its earnings on January 30, 2024. It is anticipated that the company will report an EPS of $3.20, marking a 11.85% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $4.48 billion, indicating a 13.33% decline compared to the corresponding quarter of the prior year.
Investors might also notice recent changes to analyst estimates for PulteGroup. These recent revisions tend to reflect the evolving nature of short-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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. PulteGroup currently has a Zacks Rank of #2 (Buy).
Digging into valuation, PulteGroup currently has a Forward P/E ratio of 9.12. This represents a discount compared to its industry's average Forward P/E of 9.55.
Also, we should mention that PHM has a PEG ratio of 0.3. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Home Builders was holding an average PEG ratio of 0.78 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 17, placing it within the top 7% of over 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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PulteGroup, Inc. (PHM) : Free Stock Analysis Report
