In the latest close session, PulteGroup (PHM) was up +1.24% at $115.18. The stock's performance was ahead of the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.09%.
The homebuilder's shares have seen an increase of 10.01% over the last month, surpassing the Construction sector's gain of 5.19% and the S&P 500's gain of 4.37%.
The investment community will be paying close attention to the earnings performance of PulteGroup in its upcoming release. The company is slated to reveal its earnings on July 22, 2025. On that day, PulteGroup is projected to report earnings of $2.94 per share, which would represent a year-over-year decline of 17.88%. In the meantime, our current consensus estimate forecasts the revenue to be $4.39 billion, indicating a 4.52% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.48 per share and revenue of $17.24 billion. These totals would mark changes of -21.85% and -3.96%, respectively, from last year.
It is also important to note the recent changes 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 business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% decrease. PulteGroup currently has a Zacks Rank of #4 (Sell).
In terms of valuation, PulteGroup is currently trading at a Forward P/E ratio of 9.91. This signifies no noticeable deviation in comparison to the average Forward P/E of 9.91 for its industry.
It's also important to note that PHM currently trades at a PEG ratio of 0.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Home Builders was holding an average PEG ratio of 2.34 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 195, this industry ranks in the bottom 22% of all industries, numbering over 250.
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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PulteGroup, Inc. (PHM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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