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PulteGroup (PHM) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, PulteGroup (PHM) closed at $56.55, marking a -0.19% move from the previous day. This move lagged the S&P 500's daily gain of 0.17%. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 0.67%.

Prior to today's trading, shares of the homebuilder had gained 5.75% over the past month. This has outpaced the Construction sector's loss of 2.78% and the S&P 500's gain of 0.25% 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 April 25, 2023. The company is expected to report EPS of $1.78, down 2.73% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.27 billion, up 2.52% from the prior-year quarter.

PHM's full-year Zacks Consensus Estimates are calling for earnings of $7.52 per share and revenue of $14.09 billion. These results would represent year-over-year changes of -30.37% and -13.17%, respectively.

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Any recent changes to analyst estimates for PulteGroup should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Within the past 30 days, our consensus EPS projection has moved 2.48% higher. PulteGroup currently has a Zacks Rank of #3 (Hold).

In terms of valuation, PulteGroup is currently trading at a Forward P/E ratio of 7.53. Its industry sports an average Forward P/E of 8.81, so we one might conclude that PulteGroup is trading at a discount comparatively.

Also, we should mention that PHM has a PEG ratio of 0.47. 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 was holding an average PEG ratio of 0.67 at yesterday's closing price.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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PulteGroup, Inc. (PHM) : Free Stock Analysis Report

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