PulteGroup (PHM) closed at $71.57 in the latest trading session, marking a -0.85% move from the prior day. This change lagged the S&P 500's 0.38% loss on the day. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, lost 4.19%.
Coming into today, shares of the homebuilder had gained 6.57% in the past month. In that same time, the Construction sector gained 4.28%, while the S&P 500 gained 3.78%.
Wall Street will be looking for positivity from PulteGroup as it approaches its next earnings report date. On that day, PulteGroup is projected to report earnings of $2.43 per share, which would represent a year-over-year decline of 10.99%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.93 billion, down 0.02% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.13 per share and revenue of $15.08 billion, which would represent changes of -15.46% and -7.09%, respectively, from the prior year.
Any recent changes to analyst estimates for PulteGroup should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 3.99% higher. PulteGroup is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, PulteGroup is holding a Forward P/E ratio of 7.91. For comparison, its industry has an average Forward P/E of 9.22, which means PulteGroup is trading at a discount to the group.
We can also see that PHM currently has a PEG ratio of 0.49. 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 0.81 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 7, putting it in the top 3% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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