PulteGroup (PHM) closed the most recent trading day at $126.81, moving -2.63% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 2.06% for the day. Meanwhile, the Dow experienced a drop of 1.76%, and the technology-dominated Nasdaq saw a decrease of 2.39%.
Heading into today, shares of the homebuilder had gained 9.34% over the past month, outpacing the Construction sector's gain of 7.13% and the S&P 500's gain of 1.63%.
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 January 29, 2026. The company's earnings per share (EPS) are projected to be $2.78, reflecting a 20.57% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $4.31 billion, indicating a 12.42% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $11.34 per share and a revenue of $17.01 billion, demonstrating changes of -22.8% and 0%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for PulteGroup. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.79% lower. PulteGroup presently features a Zacks Rank of #4 (Sell).
In terms of valuation, PulteGroup is presently being traded at a Forward P/E ratio of 11.7. This signifies a discount in comparison to the average Forward P/E of 12.2 for its industry.
We can additionally observe that PHM currently boasts a PEG ratio of 1.06. 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. As of the close of trade yesterday, the Building Products - Home Builders industry held an average PEG ratio of 1.79.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 242, which puts it in the bottom 2% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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PulteGroup, Inc. (PHM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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