PulteGroup, Inc. (PHM) Hit a 52 Week High, Can the Run Continue?

Core Viewpoint - PulteGroup (PHM) has shown significant stock performance, with an 18.1% increase over the past month and a 25.9% rise since the beginning of the year, outperforming both the Zacks Construction sector and the Zacks Building Products - Home Builders industry [1] Group 1: Stock Performance - PulteGroup shares reached a new 52-week high of $130.93 in the previous session [1] - The stock has outperformed the Zacks Construction sector, which increased by 16.8%, and the Zacks Building Products - Home Builders industry, which rose by 20.8% [1] Group 2: Earnings Performance - PulteGroup has consistently exceeded earnings expectations, not missing the consensus estimate in the last four quarters [2] - In the latest earnings report on July 23, 2024, the company reported EPS of $3.58, surpassing the consensus estimate of $3.21, and beat the revenue estimate by 2.72% [2] - For the current fiscal year, PulteGroup is projected to achieve earnings of $13.20 per share on revenues of $17.37 billion, reflecting a 12.63% increase in EPS and an 8.13% increase in revenues [2] - For the next fiscal year, expected earnings are $13.54 per share on revenues of $18.28 billion, indicating a year-over-year change of 2.56% in EPS and 5.26% in revenues [2] Group 3: Valuation Metrics - PulteGroup has a Value Score of A, a Growth Score of B, and a Momentum Score of C, resulting in a combined VGM Score of B [3] - The stock trades at 9.9X current fiscal year EPS estimates, aligning with the peer industry average of 9.9X, and at 10.3X trailing cash flow, compared to the peer group's average of 9.6X [4] - The PEG ratio stands at 0.52, indicating that while the stock is not in the top echelon from a value perspective, it still holds a favorable position [4] Group 4: Zacks Rank - PulteGroup holds a Zacks Rank of 2 (Buy), driven by rising earnings estimates [5] - The stock meets the criteria for selection, as it carries a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, suggesting potential for further growth in the near term [5]