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Is PulteGroup (PHM) Stock Undervalued Right Now?

By Zacks Investment ResearchStock MarketsMar 10, 2020 11:50PM ET
www.investing.com/analysis/is-pultegroup-phm-stock-undervalued-right-now-200515159
Is PulteGroup (PHM) Stock Undervalued Right Now?
By Zacks Investment Research   |  Mar 10, 2020 11:50PM ET
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is PulteGroup (NYSE:PHM). PHM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.20, which compares to its industry's average of 11.25. PHM's Forward P/E has been as high as 12.02 and as low as 8.01, with a median of 9.59, all within the past year.

Investors will also notice that PHM has a PEG ratio of 0.89. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PHM's industry has an average PEG of 1.15 right now. Over the past 52 weeks, PHM's PEG has been as high as 1.51 and as low as 0.89, with a median of 1.29.

These are just a handful of the figures considered in PulteGroup's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PHM is an impressive value stock right now.



PulteGroup, Inc. (PHM): Free Stock Analysis Report

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Is PulteGroup (PHM) Stock Undervalued Right Now?
 

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Is PulteGroup (PHM) Stock Undervalued Right Now?

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