In the latest trading session, PulteGroup (PHM) closed at $98.54, marking a +0.85% move from the previous day. This move outpaced the S&P 500's daily gain of 0.4%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq added 0.39%.
Prior to today's trading, shares of the homebuilder had lost 4.75% over the past month. This has lagged the Construction sector's gain of 7.66% and the S&P 500's gain of 6.69% in that time.
Analysts and investors alike will be keeping a close eye on the performance of PulteGroup in its upcoming earnings disclosure. The company's earnings report is set to go public on July 22, 2025. The company is predicted to post an EPS of $2.94, indicating a 17.88% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.39 billion, indicating a 4.52% decrease compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.48 per share and a revenue of $17.24 billion, indicating changes of -21.85% and -3.95%, respectively, from the former year.
Any recent changes to analyst estimates for PulteGroup should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, the Zacks Consensus EPS estimate has moved 0.72% lower. PulteGroup is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, PulteGroup is holding a Forward P/E ratio of 8.51. This represents a discount compared to its industry's average Forward P/E of 9.27.
It is also worth noting that PHM currently has a PEG ratio of 0.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 1.71.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 225, this industry ranks in the bottom 9% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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