PulteGroup (PHM) Gains But Lags Market: What You Should Know
PulteGroup (PHM) closed at $45.47 in the latest trading session, marking a +0.8% move from the prior day. This change lagged the S&P 500's 2.38% gain on the day. Meanwhile, the Dow gained 1.95%, and the Nasdaq, a tech-heavy index, added 3.01%.
Prior to today's trading, shares of the homebuilder had gained 1.21% over the past month. This has outpaced the Construction sector's gain of 0.89% and the S&P 500's loss of 0.91% in that time.
Wall Street will be looking for positivity from PHM as it approaches its next earnings report date. On that day, PHM is projected to report earnings of $1.17 per share, which would represent year-over-year growth of 58.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.91 billion, up 26.75% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.09 per share and revenue of $13.64 billion. These totals would mark changes of +17.57% and +23.56%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for PHM. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.47% higher within the past month. PHM is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that PHM has a Forward P/E ratio of 7.4 right now. Its industry sports an average Forward P/E of 8.03, so we one might conclude that PHM is trading at a discount comparatively.
Meanwhile, PHM's PEG ratio is currently 0.78. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 0.71 based on yesterday's closing prices.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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