Why PulteGroup (PHM) is a Top Momentum Stock for the Long-Term

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]