The new market cycle could be the best environment for ‘boring’ stocks to take off. Recently, there has been some interest in the real estate sector, especially after Warren Buffett started buying homebuilding stocks like PulteGroup Inc. NYSE: PHM and D.R. Horton Inc. NYSE: DHI over the last quarter of 2023. This raised the question of whether the industry could see more rallies ahead.While it may be too late to buy the home builders, considering that they have already rallied significantly over the past 12 ...

UKRAINE - 2023/10/25: In this photo illustration, PulteGroup logo is seen on a smartphone and on a ... [+] pc screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesOur theme of Housing Stocks, which includes the stocks of home improvement players, building supply companies, and home builders including DR Horton and Pulte Group has been a mixed performer this year, rising by just about 2% year-to-date. This compares to the S&P 500, which ...

Core Viewpoint - PulteGroup has experienced a stock return of -2.8% over the past month, underperforming the Zacks S&P 500 composite's +3.2% change, and the Zacks Building Products - Home Builders industry, which lost 3.5% during the same period, raising questions about its near-term stock performance [1] Earnings Estimates Revisions - The consensus earnings estimate for PulteGroup for the current quarter is $3.20 per share, reflecting a +6.7% change year-over-year, with no changes in the estimate over the last 30 days [3] - The consensus earnings estimate for the current fiscal year stands at $12.89, indicating a +10% year-over-year change, also unchanged over the last 30 days [3] - For the next fiscal year, the consensus estimate is $13.38, showing a +3.8% change from the previous year, with no revisions in the past month [3] Revenue Growth Forecast - The consensus sales estimate for PulteGroup for the current quarter is $4.48 billion, indicating a +6.9% year-over-year change [5] - The sales estimates for the current and next fiscal years are $17.34 billion and $18.28 billion, reflecting changes of +7.9% and +5.5%, respectively [5] Last Reported Results and Surprise History - PulteGroup reported revenues of $3.95 billion in the last quarter, a +10.5% year-over-year increase, with an EPS of $2.87 compared to $2.35 a year ago [6] - The reported revenues exceeded the Zacks Consensus Estimate of $3.59 billion by +10.09%, and the EPS surprise was +21.61% [6] - The company has consistently beaten consensus EPS estimates in the last four quarters and topped revenue estimates twice during this period [6] Valuation - PulteGroup is rated Zacks Rank 2 (Buy), indicating a favorable outlook based on earnings estimate revisions and other related factors [4] - The Zacks Value Style Score grades PulteGroup as an A, suggesting it is trading at a discount compared to its peers [9]

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to fi ...

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 ...

PulteGroup (PHM) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Shares of this homebuilder have returned -2.7% over the past month versus the Zacks S&P 500 composite's +4.2% change. The Zacks Building Products - Home Builders industry, to which PulteGroup belongs, has lost 3% over this period. Now the key question is: Where could the stock be headed in the near term?While media releas ...

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].

A month has gone by since the last earnings report for PulteGroup (PHM) . Shares have added about 1.7% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is PulteGroup due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. PulteGroup Q1 Earnings & Revenues Top, Orders Rise Y ...

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]