In the latest trading session, PulteGroup (PHM) closed at $111.34, marking a +1.27% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.48%. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq gained 0.94%.
Prior to today's trading, shares of the homebuilder had gained 11.42% outpaced the Construction sector's gain of 6.17% and the S&P 500's gain of 5.13%.
Investors will be eagerly watching for the performance of PulteGroup in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 22, 2025. The company is forecasted to report an EPS of $2.94, showcasing a 17.88% downward movement from the corresponding quarter of the prior year. 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.
For the full year, the Zacks Consensus Estimates project earnings of $11.48 per share and a revenue of $17.24 billion, demonstrating changes of -21.85% and -3.96%, 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. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. Currently, PulteGroup is carrying a Zacks Rank of #4 (Sell).
Looking at its valuation, PulteGroup is holding a Forward P/E ratio of 9.58. For comparison, its industry has an average Forward P/E of 10.41, which means PulteGroup is trading at a discount to the group.
Investors should also note that PHM has a PEG ratio of 0.32 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 2.26.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 212, finds itself in the bottom 15% echelons 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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