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PulteGroup (PHM) Surpasses Market Returns: Some Facts Worth Knowing

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PulteGroup (PHM - Free Report) ended the recent trading session at $103.89, demonstrating a +0.92% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.64%. Meanwhile, the Dow gained 0.85%, and the Nasdaq, a tech-heavy index, added 0.31%.

Heading into today, shares of the homebuilder had lost 4.18% over the past month, outpacing the Construction sector's loss of 7.66% and the S&P 500's loss of 7.69% in that time.

The upcoming earnings release of PulteGroup will be of great interest to investors. The company's earnings report is expected 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%. Meanwhile, the latest consensus estimate predicts the revenue to be $3.89 billion, indicating a 1.55% decrease compared to the same quarter of the previous year.

PHM's full-year Zacks Consensus Estimates are calling for earnings of $12.32 per share and revenue of $18.16 billion. These results would represent year-over-year changes of -16.13% and +1.17%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for PulteGroup. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, PulteGroup holds a Zacks Rank of #4 (Sell).

Looking at valuation, PulteGroup is presently trading at a Forward P/E ratio of 8.35. Its industry sports an average Forward P/E of 8.35, so one might conclude that PulteGroup is trading at no noticeable deviation comparatively.

One should further note that PHM currently holds a PEG ratio of 0.28. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Home Builders was holding an average PEG ratio of 0.84 at yesterday's closing price.

The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 230, finds itself in the bottom 9% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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