PulteGroup (PHM) Stock Sinks As Market Gains: What You Should Know
PulteGroup (PHM) closed at $95.99 in the latest trading session, marking a -0.06% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.46%. On the other hand, the Dow registered a gain of 0.48%, and the technology-centric Nasdaq increased by 0.7%.
Prior to today's trading, shares of the homebuilder had gained 17.08% over the past month. This has outpaced the Construction sector's gain of 11.16% and the S&P 500's gain of 4.85% in that time.
Market participants will be closely following the financial results of PulteGroup in its upcoming release. The company plans to announce its earnings on January 30, 2024. The company's earnings per share (EPS) are projected to be $3.20, reflecting a 11.85% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.48 billion, showing a 13.36% drop compared to the year-ago quarter.
PHM's full-year Zacks Consensus Estimates are calling for earnings of $11.52 per share and revenue of $16.25 billion. These results would represent year-over-year changes of +6.67% and +0.12%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for PulteGroup. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
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 0.33% higher. PulteGroup currently has a Zacks Rank of #3 (Hold).
Investors should also note PulteGroup's current valuation metrics, including its Forward P/E ratio of 8.34. Its industry sports an average Forward P/E of 9.38, so one might conclude that PulteGroup is trading at a discount comparatively.
We can also see that PHM currently has a PEG ratio of 0.28. 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 industry had an average PEG ratio of 0.8 as trading concluded yesterday.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 72, placing it within the top 29% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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PulteGroup, Inc. (PHM) : Free Stock Analysis Report
