Here's Why PulteGroup (PHM) Gained But Lagged the Market Today

Company Overview - PulteGroup (PHM) closed at $94.53, reflecting a +0.91% change from the previous day, underperforming the S&P 500's gain of 1.81% [1] - Over the last month, PulteGroup's shares decreased by 7.33%, which is better than the Construction sector's loss of 7.59% but worse than the S&P 500's loss of 6.14% [1] Upcoming Financial Results - PulteGroup is set to announce its earnings on April 22, 2025, with projected earnings of$ 2.48 per share, indicating a year-over-year decline of 13.59% [2] - The consensus estimate for revenue is $3.86 billion, reflecting a 2.16% decrease from the same quarter last year [2] Annual Forecast - For the entire year, the Zacks Consensus Estimates predict earnings of$ 12.32 per share and revenue of $18.16 billion, representing changes of -16.13% and +1.18% respectively compared to the previous year [3] Analyst Estimates and Market Sentiment - Recent modifications to analyst estimates for PulteGroup are crucial as they reflect changing business trends, with positive revisions indicating a favorable outlook on the company's health and profitability [4] - The Zacks Rank system, which evaluates these estimate changes, currently rates PulteGroup at 4 (Sell) [6] Valuation Metrics - PulteGroup has a Forward P/E ratio of 7.6, which is higher than the industry average of 7, suggesting it is trading at a premium [7] - The company has a PEG ratio of 0.25, compared to the industry average PEG ratio of 0.86, indicating a potentially undervalued position relative to its growth prospects [7] Industry Context - The Building Products - Home Builders industry, part of the Construction sector, has a Zacks Industry Rank of 213, placing it in the bottom 15% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]