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Are Investors Undervaluing PulteGroup (PHM) Right Now?
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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is PulteGroup (PHM - Free Report) . PHM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.55 right now. For comparison, its industry sports an average P/E of 11.13. Over the past 52 weeks, PHM's Forward P/E has been as high as 10.07 and as low as 6.02, with a median of 8.64.
Investors should also note that PHM holds a PEG ratio of 0.54. 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. PHM's industry has an average PEG of 0.87 right now. Within the past year, PHM's PEG has been as high as 0.80 and as low as 0.21, with a median of 0.52.
Finally, our model also underscores that PHM has a P/CF ratio of 9.53. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. PHM's P/CF compares to its industry's average P/CF of 10.36. Within the past 12 months, PHM's P/CF has been as high as 9.70 and as low as 5.36, with a median of 8.16.
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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Are Investors Undervaluing PulteGroup (PHM) 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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is PulteGroup (PHM - Free Report) . PHM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.55 right now. For comparison, its industry sports an average P/E of 11.13. Over the past 52 weeks, PHM's Forward P/E has been as high as 10.07 and as low as 6.02, with a median of 8.64.
Investors should also note that PHM holds a PEG ratio of 0.54. 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. PHM's industry has an average PEG of 0.87 right now. Within the past year, PHM's PEG has been as high as 0.80 and as low as 0.21, with a median of 0.52.
Finally, our model also underscores that PHM has a P/CF ratio of 9.53. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. PHM's P/CF compares to its industry's average P/CF of 10.36. Within the past 12 months, PHM's P/CF has been as high as 9.70 and as low as 5.36, with a median of 8.16.
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.