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].

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors identify stocks with the highest potential to outperform the market within a 30-day timeframe [1] Style Scores Breakdown - **Value Score**: Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [2] - **Growth Score**: Evaluates a company's financial health and future outlook through projected and historical earnings, sales, and cash flow [2] - **Momentum Score**: Aims to capitalize on price trends by analyzing short-term price changes and earnings estimate revisions [2] - **VGM Score**: Combines the Value, Growth, and Momentum Scores to identify stocks with the best overall characteristics [3] Zacks Rank and Style Scores Interaction - The Zacks Rank utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [4] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal return potential [5] Company Spotlight: PulteGroup (PHM) - PulteGroup, based in Atlanta, GA, primarily operates in homebuilding, contributing 98% of total revenues, with a minor segment in financial services [6] - The company holds a 1 (Strong Buy) Zacks Rank and a VGM Score of B, indicating strong investment potential [6] - Recent upward revisions in earnings estimates by six analysts for fiscal 2024 have increased the Zacks Consensus Estimate by $1.14 to $12.91 per share, with an average earnings surprise of 12.5% [6]

Core Viewpoint - PulteGroup (PHM) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Outlook - The Zacks rating upgrade reflects an upward trend in earnings estimates, which is crucial for stock price movements [1][3]. - PulteGroup is expected to earn $11.96 per share for the fiscal year ending December 2024, representing a year-over-year change of 2.1% [5]. Earnings Estimate Revisions - Over the past three months, the Zacks Consensus Estimate for PulteGroup has increased by 5.2%, indicating a positive revision trend [5]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [4]. Institutional Investor Influence - Changes in earnings estimates significantly impact institutional investors' valuation models, leading to stock price movements based on their buying or selling actions [3]. - The upgrade to Zacks Rank 1 positions PulteGroup in the top 5% of Zacks-covered stocks, suggesting potential for near-term price increases [7].

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.It also includes access to the Zacks Style Scores.W ...