Is PulteGroup (PHM) Stock Outpacing Its Construction Peers 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.
PulteGroup is a member of our Construction group, which includes 104 different companies and currently sits at #1 in the Zacks Sector Rank. 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. PHM is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for PHM's full-year earnings has moved 11.80% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, PHM has returned 8.09% so far this year. Meanwhile, stocks in the Construction group have gained about 4.96% on average. This shows that PulteGroup is outperforming its peers so far this year.
Looking more specifically, PHM belongs to the Building Products - Home Builders industry, a group that includes 16 individual stocks and currently sits at #7 in the Zacks Industry Rank. On average, this group has gained an average of 21.15% so far this year, meaning that PHM is slightly underperforming its industry in terms of year-to-date returns.
Going forward, investors interested in Construction stocks should continue to pay close attention to PHM as it looks to continue its solid performance.
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