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PulteGroup (PHM) ended the recent trading session at $102.80, demonstrating a +1.04% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.55%. At the same time, the Dow added 1.01%, and the tech-heavy Nasdaq lost 0.14%.
Shares of the homebuilder have depreciated by 1.49% over the course of the past month, outperforming the Construction sector's loss of 5.58% and the S&P 500's loss of 6.22%.
The upcoming earnings release of PulteGroup will be of great interest to investors. The company's earnings report is expected on April 22, 2025. The company's earnings per share (EPS) are projected to be $2.48, reflecting a 13.59% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $3.89 billion, indicating a 1.55% downward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.32 per share and a revenue of $18.16 billion, representing changes of -16.13% and +1.17%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for PulteGroup. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. At present, PulteGroup boasts a Zacks Rank of #3 (Hold).
In terms of valuation, PulteGroup is currently trading at a Forward P/E ratio of 8.26. This valuation marks a premium compared to its industry's average Forward P/E of 8.11.
Meanwhile, PHM's PEG ratio is currently 0.28. 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 0.96.