In the latest trading session, PulteGroup (PHM) closed at $124.39, marking a -1.68% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.24% for the day. Meanwhile, the Dow lost 0.62%, and the Nasdaq, a tech-heavy index, added 0.23%.
Heading into today, shares of the homebuilder had gained 11.09% over the past month, outpacing the Construction sector's gain of 4.09% and the S&P 500's gain of 1.31%.
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 January 29, 2026. It is anticipated that the company will report an EPS of $2.79, marking a 20.29% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.31 billion, reflecting a 12.42% fall from the equivalent quarter last year.
PHM's full-year Zacks Consensus Estimates are calling for earnings of $11.34 per share and revenue of $17.01 billion. These results would represent year-over-year changes of -22.8% and -5.21%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for PulteGroup. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, PulteGroup boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, PulteGroup is holding a Forward P/E ratio of 11.15. This denotes a discount relative to the industry average Forward P/E of 12.06.
Also, we should mention that PHM has a PEG ratio of 1.01. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 1.86.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 218, placing it within the bottom 12% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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PulteGroup, Inc. (PHM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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