In the latest trading session, PulteGroup (PHM) closed at $126.75, marking a -2.52% move from the previous day. This change lagged the S&P 500's 0.72% gain on the day. Meanwhile, the Dow experienced a rise of 0.2%, and the technology-dominated Nasdaq saw an increase of 1.57%.
The homebuilder's stock has dropped by 1.72% in the past month, exceeding the Construction sector's loss of 4.37% and lagging the S&P 500's gain of 3.68%.
The investment community will be closely monitoring the performance of PulteGroup in its forthcoming earnings report. The company is expected to report EPS of $2.65, down 10.47% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.14 billion, down 5.91% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.12 per share and revenue of $16.4 billion, which would represent changes of -11.54% and -5.29%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for PulteGroup. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
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 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. Over the past month, there's been a 0.35% rise in the Zacks Consensus EPS estimate. At present, PulteGroup boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that PulteGroup has a Forward P/E ratio of 12.85 right now. Its industry sports an average Forward P/E of 14.58, so one might conclude that PulteGroup is trading at a discount comparatively.
Meanwhile, PHM's PEG ratio is currently 1.61. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Building Products - Home Builders industry stood at 2.92 at the close of the market yesterday.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 101, positioning it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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PulteGroup, Inc. (PHM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).