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Should Value Investors Buy PulteGroup (PHM) Stock?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is PulteGroup (PHM - Free Report) . PHM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 9.09, while its industry has an average P/E of 10.35. Over the past year, PHM's Forward P/E has been as high as 9.29 and as low as 6.02, with a median of 7.66.
Investors will also notice that PHM has a PEG ratio of 0.30. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PHM's PEG compares to its industry's average PEG of 0.65. PHM's PEG has been as high as 0.73 and as low as 0.21, with a median of 0.49, all within the past year.
Finally, our model also underscores that PHM has a P/CF ratio of 7.99. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PHM's P/CF compares to its industry's average P/CF of 9.02. Over the past 52 weeks, PHM's P/CF has been as high as 8.15 and as low as 4.26, with a median of 5.88.
These are only a few of the key metrics included in PulteGroup's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PHM looks like an impressive value stock at the moment.
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Should Value Investors Buy PulteGroup (PHM) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is PulteGroup (PHM - Free Report) . PHM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 9.09, while its industry has an average P/E of 10.35. Over the past year, PHM's Forward P/E has been as high as 9.29 and as low as 6.02, with a median of 7.66.
Investors will also notice that PHM has a PEG ratio of 0.30. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PHM's PEG compares to its industry's average PEG of 0.65. PHM's PEG has been as high as 0.73 and as low as 0.21, with a median of 0.49, all within the past year.
Finally, our model also underscores that PHM has a P/CF ratio of 7.99. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PHM's P/CF compares to its industry's average P/CF of 9.02. Over the past 52 weeks, PHM's P/CF has been as high as 8.15 and as low as 4.26, with a median of 5.88.
These are only a few of the key metrics included in PulteGroup's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PHM looks like an impressive value stock at the moment.