Yahoo Finance PulteGroup (PHM) Dips More Than Broader Markets: What You Should Know
In the latest trading session, PulteGroup (PHM) closed at $40.86, marking a -0.32% move from the previous day. This move lagged the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq lost 0.12%.
Prior to today's trading, shares of the homebuilder had gained 2.96% over the past month. This has outpaced the Construction sector's loss of 1.81% and the S&P 500's loss of 3.29% in that time.
Wall Street will be looking for positivity from PulteGroup as it approaches its next earnings report date. This is expected to be October 25, 2022. The company is expected to report EPS of $2.76, up 51.65% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.05 billion, up 16.38% from the prior-year quarter.
PHM's full-year Zacks Consensus Estimates are calling for earnings of $11.15 per share and revenue of $16.72 billion. These results would represent year-over-year changes of +52.74% and +20.08%, respectively.
Investors should also note any recent changes to analyst estimates for PulteGroup. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 0.96% lower. PulteGroup is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, PulteGroup currently has a Forward P/E ratio of 3.68. For comparison, its industry has an average Forward P/E of 3.59, which means PulteGroup is trading at a premium to the group.
Meanwhile, PHM's PEG ratio is currently 2.13. 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. The Building Products - Home Builders industry currently had an average PEG ratio of 0.52 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 244, putting it in the bottom 4% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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