Here's Why PulteGroup (PHM) is a Strong Value Stock
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
PulteGroup (PHM)
Based in Atlanta, GA, PulteGroup Inc. engages in homebuilding and financial services businesses, primarily in the United States. The company conducts operations through two primary business segments – Homebuilding (which contributed 98% as of 2023 to total revenues) and Financial Services (2%).
PHM is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of B. Shares are currently trading at a forward P/E of 9.9X for the current fiscal year compared to the Building Products - Home Builders industry's P/E of 9.9X. Additionally, PHM has a PEG Ratio of 0.5 and a Price/Cash Flow ratio of 10.4X. Value investors should also note PHM's Price/Sales ratio of 1.6X.
A company's earnings performance is important for value investors as well. For fiscal 2024, six analysts revised their earnings estimate higher in the last 60 days for PHM, while the Zacks Consensus Estimate has increased $0.51 to $13.36 per share. PHM also holds an average earnings surprise of 10%.
PHM should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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PulteGroup, Inc. (PHM) : Free Stock Analysis Report