In the latest close session, PulteGroup (PHM) was down 3.42% at $118.58. The stock's change was less than the S&P 500's daily loss of 1.62%. Meanwhile, the Dow lost 1.87%, and the Nasdaq, a tech-heavy index, lost 1.98%.
Heading into today, shares of the homebuilder had gained 7.18% over the past month, outpacing the Construction sector's loss of 1.1% and the S&P 500's loss of 0.03%.
Market participants will be closely following the financial results of PulteGroup in its upcoming release. The company plans to announce its earnings on July 22, 2026. On that day, PulteGroup is projected to report earnings of $2.43 per share, which would represent a year-over-year decline of 19.8%. Simultaneously, our latest consensus estimate expects the revenue to be $4.03 billion, showing a 8.53% drop compared to the year-ago quarter.
PHM's full-year Zacks Consensus Estimates are calling for earnings of $10 per share and revenue of $16.4 billion. These results would represent year-over-year changes of -12.59% and -5.29%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for PulteGroup. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. PulteGroup is currently a Zacks Rank #4 (Sell).
With respect to valuation, PulteGroup is currently being traded at a Forward P/E ratio of 12.28. This expresses a discount compared to the average Forward P/E of 14.39 of its industry.
Meanwhile, PHM's PEG ratio is currently 1.56. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Building Products - Home Builders industry stood at 1.88 at the close of the market yesterday.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 227, which puts it in the bottom 7% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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PulteGroup, Inc. (PHM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).