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PulteGroup (PHM) Gains But Lags Market: What You Should Know

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PulteGroup (PHM) closed the most recent trading day at $40.40, moving +1.71% from the previous trading session. This move lagged the S&P 500's daily gain of 3.06%. At the same time, the Dow added 2.68%, and the tech-heavy Nasdaq lost 0.08%.

Heading into today, shares of the homebuilder had lost 11.69% over the past month, lagging the Construction sector's loss of 9.92% and the S&P 500's loss of 4.31% in that time.

PulteGroup will be looking to display strength as it nears its next earnings release, which is expected to be July 26, 2022. On that day, PulteGroup is projected to report earnings of $2.59 per share, which would represent year-over-year growth of 50.58%. Our most recent consensus estimate is calling for quarterly revenue of $4.06 billion, up 20.83% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.65 per share and revenue of $16.75 billion. These totals would mark changes of +45.89% and +20.28%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for PulteGroup. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 0.59% lower. PulteGroup is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that PulteGroup has a Forward P/E ratio of 3.73 right now. This represents a premium compared to its industry's average Forward P/E of 3.14.

Investors should also note that PHM has a PEG ratio of 0.62 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Home Builders was holding an average PEG ratio of 0.62 at yesterday's closing price.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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