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PulteGroup (PHM) Stock Dips While Market Gains: Key Facts

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In the latest trading session, PulteGroup (PHM - Free Report) closed at $104.45, marking a -1.68% move from the previous day. This change lagged the S&P 500's 0.01% gain on the day. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq added 0.26%.

Heading into today, shares of the homebuilder had lost 7.67% over the past month, outpacing the Construction sector's loss of 10.8% and lagging the S&P 500's loss of 2.26% in that time.

The investment community will be closely monitoring the performance of PulteGroup in its forthcoming earnings report. The company is scheduled to release its earnings on April 22, 2025. On that day, PulteGroup is projected to report earnings of $2.48 per share, which would represent a year-over-year decline of 13.59%. In the meantime, our current consensus estimate forecasts the revenue to be $3.89 billion, indicating a 1.55% decline compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.32 per share and a revenue of $18.16 billion, representing changes of -16.13% and +1.17%, respectively, from the prior year.

Any recent changes to analyst estimates for PulteGroup should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 7.94% lower. Currently, PulteGroup is carrying a Zacks Rank of #4 (Sell).

In the context of valuation, PulteGroup is at present trading with a Forward P/E ratio of 8.62. This signifies a premium in comparison to the average Forward P/E of 8.46 for its industry.

It's also important to note that PHM currently trades at a PEG ratio of 0.29. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Building Products - Home Builders industry stood at 0.92 at the close of the market yesterday.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 241, putting it in the bottom 4% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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