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Are Investors Undervaluing PulteGroup (PHM) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is PulteGroup (PHM - Free Report) . PHM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.39 right now. For comparison, its industry sports an average P/E of 11.57. Over the last 12 months, PHM's Forward P/E has been as high as 10.72 and as low as 6.02, with a median of 8.94.
Investors should also note that PHM holds a PEG ratio of 0.55. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PHM's industry has an average PEG of 0.90 right now. Over the past 52 weeks, PHM's PEG has been as high as 0.80 and as low as 0.21, with a median of 0.50.
Finally, investors should note that PHM has a P/CF ratio of 10.21. 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 current P/CF looks attractive when compared to its industry's average P/CF of 10.75. Over the past 52 weeks, PHM's P/CF has been as high as 10.54 and as low as 5.36, with a median of 8.46.
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?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is PulteGroup (PHM - Free Report) . PHM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.39 right now. For comparison, its industry sports an average P/E of 11.57. Over the last 12 months, PHM's Forward P/E has been as high as 10.72 and as low as 6.02, with a median of 8.94.
Investors should also note that PHM holds a PEG ratio of 0.55. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PHM's industry has an average PEG of 0.90 right now. Over the past 52 weeks, PHM's PEG has been as high as 0.80 and as low as 0.21, with a median of 0.50.
Finally, investors should note that PHM has a P/CF ratio of 10.21. 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 current P/CF looks attractive when compared to its industry's average P/CF of 10.75. Over the past 52 weeks, PHM's P/CF has been as high as 10.54 and as low as 5.36, with a median of 8.46.
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.