PulteGroup (PHM) closed at $107.64 in the latest trading session, marking a -1.16% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.22%. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.16%.
Shares of the homebuilder witnessed a loss of 15.78% over the previous month, trailing the performance of the Construction sector with its loss of 12.78% and the S&P 500's loss of 2.36%.
Market participants will be closely following the financial results of PulteGroup in its upcoming release. The company plans to announce its earnings on January 30, 2025. It is anticipated that the company will report an EPS of $3.20, marking a 2.44% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $4.64 billion, indicating an 8.17% growth compared to the corresponding quarter of the prior year.
Investors should also pay attention to any latest changes in analyst estimates for PulteGroup. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.27% lower within the past month. PulteGroup is currently a Zacks Rank #3 (Hold).
Digging into valuation, PulteGroup currently has a Forward P/E ratio of 8.15. This signifies a premium in comparison to the average Forward P/E of 7.85 for its industry.
One should further note that PHM currently holds a PEG ratio of 0.43. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 0.67 based on yesterday's closing prices.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 208, positioning it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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