Is Most-Watched Stock PulteGroup, Inc. (PHM) Worth Betting on Now?

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]