PulteGroup (PHM) Registers a Bigger Fall Than the Market: Important Facts to Note

Core Viewpoint - PulteGroup is facing a projected decline in earnings and revenue for the upcoming quarter, with significant decreases anticipated compared to the previous year [2][3]. Company Performance - PulteGroup's stock closed at $126.81, down 2.63% from the previous trading session, underperforming the S&P 500, which fell by 2.06% [1]. - Over the past month, PulteGroup's shares have increased by 9.34%, outperforming the Construction sector's gain of 7.13% and the S&P 500's gain of 1.63% [1]. Earnings Estimates - The upcoming earnings release is scheduled for January 29, 2026, with an expected earnings per share (EPS) of $2.78, reflecting a 20.57% decrease from the same quarter last year [2]. - The revenue forecast for the same quarter is $4.31 billion, indicating a 12.42% decline compared to the prior year [2]. Full Year Projections - For the full year, the Zacks Consensus Estimates project earnings of $11.34 per share and revenue of $17.01 billion, showing changes of -22.8% and 0% respectively from the previous year [3]. Analyst Sentiment - Recent changes in analyst estimates for PulteGroup are crucial as they reflect evolving short-term business trends, with positive revisions indicating analyst optimism [3][4]. Valuation Metrics - PulteGroup is currently trading at a Forward P/E ratio of 11.7, which is below the industry average of 12.2 [6]. - The company has a PEG ratio of 1.06, compared to the industry average PEG ratio of 1.79, indicating a more favorable valuation relative to expected earnings growth [7]. Industry Context - The Building Products - Home Builders industry, part of the Construction sector, has a Zacks Industry Rank of 242, placing it in the bottom 2% of over 250 industries [8]. - The Zacks Industry Rank assesses industry strength based on the average Zacks Rank of individual stocks, with higher-ranked industries outperforming lower-ranked ones [8].