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Should Value Investors Buy PulteGroup (PHM) Stock?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 company to watch right now is PulteGroup (PHM - Free Report) . PHM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.93, which compares to its industry's average of 10.48. PHM's Forward P/E has been as high as 10.07 and as low as 6.02, with a median of 8.73, all within the past year.
Investors should also note that PHM holds a PEG ratio of 0.47. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PHM's industry currently sports an average PEG of 0.81. Within the past year, PHM's PEG has been as high as 0.80 and as low as 0.21, with a median of 0.51.
Finally, our model also underscores that PHM has a P/CF ratio of 8.72. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.72. PHM's P/CF has been as high as 9.70 and as low as 5.36, with a median of 8.29, all within the past year.
These are just a handful of the figures considered in PulteGroup's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PHM is an impressive value stock right now.
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Should Value Investors Buy PulteGroup (PHM) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 company to watch right now is PulteGroup (PHM - Free Report) . PHM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.93, which compares to its industry's average of 10.48. PHM's Forward P/E has been as high as 10.07 and as low as 6.02, with a median of 8.73, all within the past year.
Investors should also note that PHM holds a PEG ratio of 0.47. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PHM's industry currently sports an average PEG of 0.81. Within the past year, PHM's PEG has been as high as 0.80 and as low as 0.21, with a median of 0.51.
Finally, our model also underscores that PHM has a P/CF ratio of 8.72. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.72. PHM's P/CF has been as high as 9.70 and as low as 5.36, with a median of 8.29, all within the past year.
These are just a handful of the figures considered in PulteGroup's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PHM is an impressive value stock right now.