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PulteGroup (PHM) Stock Drops Despite Market Gains: Important Facts to Note

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PulteGroup (PHM - Free Report) closed the latest trading day at $110.18, indicating a -0.65% change from the previous session's end. This change lagged the S&P 500's 0.63% gain on the day. Meanwhile, the Dow experienced a rise of 0.2%, and the technology-dominated Nasdaq saw an increase of 0.82%.

The homebuilder's stock has climbed by 9.31% in the past month, exceeding the Construction sector's gain of 5.28% and the S&P 500's gain of 1.76%.

Analysts and investors alike will be keeping a close eye on the performance of PulteGroup in its upcoming earnings disclosure. The company's earnings report is set to go public on April 23, 2024. The company's upcoming EPS is projected at $2.36, signifying a 0.43% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $3.59 billion, up 0.37% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.77 per share and a revenue of $16.89 billion, indicating changes of +0.43% and +5.15%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for PulteGroup. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.43% higher. PulteGroup is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, PulteGroup is presently being traded at a Forward P/E ratio of 9.43. For comparison, its industry has an average Forward P/E of 9.4, which means PulteGroup is trading at a premium to the group.

We can also see that PHM currently has a PEG ratio of 0.75. 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. PHM's industry had an average PEG ratio of 0.85 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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