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PulteGroup (PHM) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
·3 min read

In the latest trading session, PulteGroup (PHM) closed at $49.37, marking a +1.98% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.34%.

Prior to today's trading, shares of the homebuilder had lost 0.47% over the past month. This has was narrower than the Construction sector's loss of 1.62% and lagged the S&P 500's loss of 0.12% in that time.

PHM will be looking to display strength as it nears its next earnings release, which is expected to be October 26, 2021. In that report, analysts expect PHM to post earnings of $1.85 per share. This would mark year-over-year growth of 38.06%. Our most recent consensus estimate is calling for quarterly revenue of $3.56 billion, up 20.42% from the year-ago period.

PHM's full-year Zacks Consensus Estimates are calling for earnings of $7.37 per share and revenue of $14.21 billion. These results would represent year-over-year changes of +42.28% and +28.76%, respectively.

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Any recent changes to analyst estimates for PHM should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. PHM is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note PHM's current valuation metrics, including its Forward P/E ratio of 6.57. This valuation marks a discount compared to its industry's average Forward P/E of 6.69.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 39% 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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