Investors looking for stocks in the Building Products - Home Builders sector might want to consider either PulteGroup (PHM) or NVR (NVR) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores high ...

PulteGroup (PHM) closed the most recent trading day at $114.41, moving +0.28% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.77%. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 0.95%. The homebuilder's shares have seen a decrease of 4.18% over the last month, not keeping up with the Construction sector's loss of 4.01% and the S&P 500's gain of 3.71%. The investment community will be paying close attenti ...

Core Insights - PulteGroup has experienced a stock return of -2.7% over the past month, while the S&P 500 composite increased by +4.2% [1] - The Zacks Building Products - Home Builders industry has seen a decline of 3% during the same period [1] Earnings Estimates - PulteGroup is expected to report earnings of $3.20 per share for the current quarter, reflecting a year-over-year increase of +6.7% [3] - The consensus earnings estimate for the current fiscal year stands at $12.89, indicating a year-over-year change of +10% [3] - For the next fiscal year, the earnings estimate is $13.38, which represents a +3.8% increase compared to the previous year [3] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $4.48 billion, showing a year-over-year growth of +6.9% [5] - For the current fiscal year, the revenue estimate is $17.34 billion, indicating a +7.9% change, while the next fiscal year's estimate is $18.28 billion, reflecting a +5.5% change [5] Last Reported Results - In the last reported quarter, PulteGroup achieved revenues of $3.95 billion, a year-over-year increase of +10.5% [6] - The EPS for the same period was $2.87, compared to $2.35 a year ago, with a revenue surprise of +10.09% and an EPS surprise of +21.61% [6] - The company has consistently beaten consensus EPS estimates in the last four quarters and has exceeded revenue estimates twice during this period [6] Valuation - PulteGroup's valuation metrics, including price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), are essential for assessing whether the stock is fairly valued [7] - The Zacks Value Style Score indicates that PulteGroup is graded B, suggesting it is trading at a discount compared to its peers [9] Conclusion - The Zacks Rank 1 for PulteGroup indicates a strong potential for outperforming the broader market in the near term [10]

Core Viewpoint - PulteGroup (PHM) is currently viewed as a better value opportunity compared to NVR, based on various valuation metrics and earnings outlook improvements [1][3]. Valuation Metrics - PHM has a forward P/E ratio of 9.10, significantly lower than NVR's forward P/E of 15.55 [2]. - The PEG ratio for PHM is 0.52, indicating a more favorable valuation relative to its expected EPS growth, while NVR's PEG ratio stands at 3.19 [2]. - PHM's P/B ratio is 2.29, compared to NVR's P/B ratio of 5.60, suggesting that PHM is undervalued relative to its book value [2]. Earnings Outlook - PHM has experienced stronger improvements in its earnings outlook compared to NVR, which is reflected in its higher Zacks Rank of 1 (Strong Buy) versus NVR's 3 (Hold) [1][3]. - The overall valuation metrics and estimate revision activity favor PHM, leading to a Value grade of B for PHM and a Value grade of C for NVR [3].

Core Viewpoint - PulteGroup reported strong first-quarter 2024 earnings and revenues, exceeding consensus estimates, driven by favorable demand conditions and a balanced operating model [2][3]. Financial Performance - Adjusted earnings per share were $2.87, surpassing the consensus estimate of $2.36 by 21.6% and increasing 22.1% from $2.35 a year ago [3]. - Total revenues reached $3.95 billion, beating the consensus mark of $3.59 billion by 10.1% and increasing 10.4% from the previous year's $3.58 billion [3]. Segment Performance - Homebuilding segment revenues increased 9.6% year over year to $3.86 billion, with home sale revenues of $3.82 billion up 9.5% due to solid homes closed [4]. - The number of homes closed rose 11% to 7,095 units, while the average selling price of homes delivered was $538,000, down 1.3% year over year [4]. - New home orders increased 14% year over year to 8,379 units, with the value of new orders rising 24% to $4.7 billion [4]. Backlog and Margins - The backlog of orders was 13,430 units, up 2.3% year over year, with potential housing revenues from the backlog increasing 2.8% to $8.2 billion [5]. - Home sales gross margin improved by 50 basis points to 29.6%, supported by strong homebuyer demand [5]. Financial Services - Revenues from the Financial Services segment surged 59.4% year over year to $92.4 million, with pretax income rising to $41 million from $14 million a year ago [5]. Cash Position and Share Repurchase - At the end of Q1, cash and cash equivalents were $1.77 billion, down from $1.85 billion at the end of 2023 [6]. - The company repurchased 2.3 million shares for $246 million at an average price of $106.73 per share [6]. Guidance - For Q2, PulteGroup expects to close between 7,800 and 8,200 homes, raising its full-year closings guidance to nearly 31,000 homes, reflecting an 8% year-over-year increase [7]. - Gross margin is projected to be 29.2% for Q2, with expectations of 29% for Q3 and Q4 [8]. Estimates and Rankings - Consensus estimates have trended upward, with a 6.45% shift due to recent performance [8]. - PulteGroup holds a Zacks Rank 1 (Strong Buy), indicating expectations for above-average returns in the coming months [10].

Core Viewpoint - Despite rising mortgage rates, the housing market outlook remains positive due to favorable demographics, a significant housing supply shortage, and strong demand trends [1] Company Performance - PulteGroup, Inc. (PHM) has experienced a 74.9% stock price increase over the past year, outperforming the Zacks Building Products - Home Builders industry's growth of 51.1% [1] - The Zacks Consensus Estimate for PulteGroup's 2024 earnings per share (EPS) has risen from $11.77 to $12.89 over the past 30 days, indicating increased analyst optimism [1] Growth Drivers - **Solid Operating Model**: PulteGroup maintains a balanced approach between speculative and build-to-order sales, allowing flexibility to meet diverse buyer needs [3][4] - **Land Acquisition Strategy**: The company invested $4.3 billion in land acquisition in 2023 and plans to spend about $5 billion in 2024, focusing on developing existing land assets [4][5] - **Focus on Affordability**: PulteGroup targets entry-level homes, with first-time buyers constituting 41% of its customer base in Q1 2024, aligning with its strategy to cater to this segment [5] Financial Metrics - PulteGroup's trailing 12-month Return on Equity (ROE) stands at 25.8%, significantly higher than the industry average of 15.9%, reflecting efficient use of shareholder funds [6]

Core Viewpoint - PulteGroup (PHM) is currently viewed as a better value opportunity compared to NVR based on earnings estimate revisions and valuation metrics [1]. Valuation Metrics - PHM has a forward P/E ratio of 9.21, significantly lower than NVR's forward P/E of 15.60 [2]. - PHM's PEG ratio is 0.52, indicating a more favorable valuation relative to its expected EPS growth, while NVR's PEG ratio is 3.20 [2]. - PHM's P/B ratio stands at 2.32, compared to NVR's P/B ratio of 5.62, suggesting that PHM is more attractively valued [2]. Analyst Outlook - PHM holds a Zacks Rank of 1 (Strong Buy), indicating a positive analyst outlook, while NVR has a Zacks Rank of 3 (Hold) [1]. - The stronger estimate revision activity for PHM supports its position as the superior option for value investors [3].

PulteGroup (PHM) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.The upward trend in estimate revisions for this homebuilder reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in ...

Key PointsPulteGroup is a U.S. homebuilder that operates under brands like Pulte Homes, Del Webb, Centex, American West, DiVosta, John Wieland Homes, and Neighborhoods.Despite a soft housing market, PulteGroup is thriving as new home sales rose 8.8% in March 2024, while existing home sales fell 4.3% to 4.3 million.PulteGroup beat Q1 EPS estimates by 74 cents while revenues climbed by 10.4% YoY to $3.95 billion, beating $3.58 billion consensus estimates.5 stocks we like better than PulteGroupHomebuilder Pult ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, leveraging established price movements for profitable trades [1]. Group 1: Company Overview - PulteGroup (PHM) currently holds a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance in the market [2][5]. - Over the past week, PulteGroup shares increased by 2.5%, matching the performance of the Zacks Building Products - Home Builders industry [3]. - In the last quarter, PulteGroup shares rose by 13.13%, and over the past year, they have surged by 74.04%, significantly outperforming the S&P 500, which increased by 3.78% and 27.1% respectively [3]. Group 2: Earnings Outlook - In the last two months, 6 earnings estimates for PulteGroup have been revised upwards, while none have been revised downwards, leading to an increase in the consensus estimate from $11.77 to $12.91 [4]. - For the next fiscal year, 7 estimates have also moved higher with no downward revisions, indicating positive earnings momentum [4]. Group 3: Trading Volume - PulteGroup's average 20-day trading volume is 1,825,814 shares, which serves as a bullish indicator when combined with rising stock prices [3].