Yahoo Finance Is PulteGroup (PHM) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is PulteGroup (PHM). PHM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.50, while its industry has an average P/E of 9.60. Over the last 12 months, PHM's Forward P/E has been as high as 10.07 and as low as 6.02, with a median of 8.62.
Investors will also notice that PHM has a PEG ratio of 0.48. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PHM's industry currently sports an average PEG of 0.77. PHM's PEG has been as high as 0.80 and as low as 0.21, with a median of 0.53, all within the past year.
Finally, our model also underscores that PHM has a P/CF ratio of 8.46. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. PHM's current P/CF looks attractive when compared to its industry's average P/CF of 8.86. Over the past 52 weeks, PHM's P/CF has been as high as 9.70 and as low as 5.36, with a median of 7.89.
Value investors will likely look at more than just these metrics, but the above data helps show that PulteGroup is likely undervalued currently. And when considering the strength of its earnings outlook, PHM sticks out at as one of the market's strongest value stocks.
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PulteGroup, Inc. (PHM) : Free Stock Analysis Report
