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PulteGroup (PHM) Stock Sinks As Market Gains: What You Should Know
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PulteGroup (PHM - Free Report) closed the most recent trading day at $76.96, moving -1.8% from the previous trading session. This move lagged the S&P 500's daily gain of 0.12%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq gained 0.29%.
Prior to today's trading, shares of the homebuilder had lost 6.97% over the past month. This has lagged the Construction sector's loss of 3.92% and the S&P 500's gain of 0.09% in that time.
PulteGroup will be looking to display strength as it nears its next earnings release. In that report, analysts expect PulteGroup to post earnings of $2.79 per share. This would mark year-over-year growth of 3.72%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.04 billion, up 2.41% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.62 per share and revenue of $16.49 billion, which would represent changes of +7.59% and +1.6%, respectively, from the prior year.
Any recent changes to analyst estimates for PulteGroup should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. PulteGroup is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that PulteGroup has a Forward P/E ratio of 6.74 right now. For comparison, its industry has an average Forward P/E of 8.64, which means PulteGroup is trading at a discount to the group.
It is also worth noting that PHM currently has a PEG ratio of 0.63. 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 0.73 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 3, putting it in the top 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow PHM in the coming trading sessions, be sure to utilize Zacks.com.
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PulteGroup (PHM) Stock Sinks As Market Gains: What You Should Know
PulteGroup (PHM - Free Report) closed the most recent trading day at $76.96, moving -1.8% from the previous trading session. This move lagged the S&P 500's daily gain of 0.12%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq gained 0.29%.
Prior to today's trading, shares of the homebuilder had lost 6.97% over the past month. This has lagged the Construction sector's loss of 3.92% and the S&P 500's gain of 0.09% in that time.
PulteGroup will be looking to display strength as it nears its next earnings release. In that report, analysts expect PulteGroup to post earnings of $2.79 per share. This would mark year-over-year growth of 3.72%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.04 billion, up 2.41% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.62 per share and revenue of $16.49 billion, which would represent changes of +7.59% and +1.6%, respectively, from the prior year.
Any recent changes to analyst estimates for PulteGroup should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. PulteGroup is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that PulteGroup has a Forward P/E ratio of 6.74 right now. For comparison, its industry has an average Forward P/E of 8.64, which means PulteGroup is trading at a discount to the group.
It is also worth noting that PHM currently has a PEG ratio of 0.63. 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 0.73 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 3, putting it in the top 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow PHM in the coming trading sessions, be sure to utilize Zacks.com.