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PulteGroup (PHM) Stock Sinks As Market Gains: What You Should Know
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PulteGroup (PHM - Free Report) closed at $73.22 in the latest trading session, marking a -1.12% move from the prior day. This change lagged the S&P 500's daily gain of 0.01%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 0.67%.
Heading into today, shares of the homebuilder had lost 10.38% over the past month, lagging the Construction sector's loss of 6.73% and the S&P 500's loss of 4.45% in that time.
Investors will be hoping for strength from PulteGroup as it approaches its next earnings release, which is expected to be October 24, 2023. The company is expected to report EPS of $2.79, up 3.72% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.04 billion, up 2.41% from the prior-year quarter.
PHM's full-year Zacks Consensus Estimates are calling for earnings of $11.62 per share and revenue of $16.49 billion. These results would represent year-over-year changes of +7.59% and +1.6%, respectively.
It is also important to note the recent changes to analyst estimates for PulteGroup. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PulteGroup is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, PulteGroup is currently trading at a Forward P/E ratio of 6.37. For comparison, its industry has an average Forward P/E of 8.1, which means PulteGroup is trading at a discount to the group.
Also, we should mention that PHM has a PEG ratio of 0.6. 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 was holding an average PEG ratio of 0.68 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 17, which puts it in the top 7% 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.
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 at $73.22 in the latest trading session, marking a -1.12% move from the prior day. This change lagged the S&P 500's daily gain of 0.01%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 0.67%.
Heading into today, shares of the homebuilder had lost 10.38% over the past month, lagging the Construction sector's loss of 6.73% and the S&P 500's loss of 4.45% in that time.
Investors will be hoping for strength from PulteGroup as it approaches its next earnings release, which is expected to be October 24, 2023. The company is expected to report EPS of $2.79, up 3.72% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.04 billion, up 2.41% from the prior-year quarter.
PHM's full-year Zacks Consensus Estimates are calling for earnings of $11.62 per share and revenue of $16.49 billion. These results would represent year-over-year changes of +7.59% and +1.6%, respectively.
It is also important to note the recent changes to analyst estimates for PulteGroup. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PulteGroup is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, PulteGroup is currently trading at a Forward P/E ratio of 6.37. For comparison, its industry has an average Forward P/E of 8.1, which means PulteGroup is trading at a discount to the group.
Also, we should mention that PHM has a PEG ratio of 0.6. 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 was holding an average PEG ratio of 0.68 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 17, which puts it in the top 7% 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.
To follow PHM in the coming trading sessions, be sure to utilize Zacks.com.