PulteGroup (PHM) closed at $109.13 in the latest trading session, marking a -2.2% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 1.11%. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 1.88%.
The homebuilder's stock has dropped by 6.6% in the past month, falling short of the Construction sector's loss of 3.55% and the S&P 500's gain of 2.06%.
Analysts and investors alike will be keeping a close eye on the performance of PulteGroup in its upcoming earnings disclosure. The company's earnings report is set to go public on October 22, 2026. In that report, analysts expect PulteGroup to post earnings of $2.62 per share. This would mark a year-over-year decline of 11.49%. Simultaneously, our latest consensus estimate expects the revenue to be $4.13 billion, showing a 6.17% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.08 per share and a revenue of $16.36 billion, indicating changes of -11.89% and -5.52%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for PulteGroup. 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 business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.02% rise in the Zacks Consensus EPS estimate. Currently, PulteGroup is carrying a Zacks Rank of #4 (Sell).
Looking at valuation, PulteGroup is presently trading at a Forward P/E ratio of 11.07. Its industry sports an average Forward P/E of 12.24, so one might conclude that PulteGroup is trading at a discount comparatively.
It is also worth noting that PHM currently has a PEG ratio of 1.54. 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 had an average PEG ratio of 2.1 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 238, this industry ranks in the bottom 4% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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PulteGroup, Inc. (PHM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).