PulteGroup, Inc. (PHM) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - PulteGroup has demonstrated strong stock performance, achieving a 52-week high and outperforming both the construction sector and home builders industry year-to-date [1][2]. Group 1: Stock Performance - PulteGroup's stock is up 0.5% over the past month and has gained 29.5% since the beginning of the year, compared to 19% for the Zacks Construction sector and 25.8% for the Zacks Building Products - Home Builders industry [1]. - The stock reached a new 52-week high of $136.47 in the previous session [1]. Group 2: Earnings Performance - PulteGroup has a strong record of positive earnings surprises, having beaten earnings consensus estimates in the last four quarters [2]. - In the latest earnings report on July 23, 2024, PulteGroup reported EPS of $3.58, exceeding the consensus estimate of $3.21, and beat the revenue estimate by 2.72% [2]. - For the current fiscal year, PulteGroup is expected to post earnings of $13.36 per share on revenues of $17.43 billion, reflecting a 13.99% change in EPS and an 8.49% change in revenues [2]. - For the next fiscal year, the company is projected to earn $13.58 per share on $18.35 billion in revenues, indicating a year-over-year change of 1.65% in EPS and 5.29% in revenues [2]. Group 3: Valuation Metrics - PulteGroup currently trades at 10X current fiscal year EPS estimates, aligning with the peer industry average of 10X [4]. - On a trailing cash flow basis, the stock trades at 10.6X compared to the peer group's average of 9.7X [4]. - The stock has a PEG ratio of 0.53, which does not place it among the top echelon of stocks from a value perspective [4]. Group 4: Zacks Rank - PulteGroup holds a Zacks Rank of 2 (Buy) due to rising earnings estimates [5]. - The company meets the criteria for selection, as it has a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B [5]. - This suggests that PulteGroup shares may have further upside potential in the near term [5].