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

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

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PulteGroup (PHM)

Based in Atlanta, GA, PulteGroup Inc. engages in homebuilding and financial services businesses, primarily in the United States. The company conducts operations through two primary business segments – Homebuilding (which contributed 98% as of 2023 to total revenues) and Financial Services (2%).

PHM sits at a Zacks Rank #1 (Strong Buy), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Building Products - Home Builders industry's P/E of 8.3X, shares of PulteGroup are trading at a forward P/E of 8.7X. PHM also has a PEG Ratio of 0.5, a Price/Cash Flow ratio of 8.8X, and a Price/Sales ratio of 1.4X.

A company's earnings performance is important for value investors as well. For fiscal 2024, seven analysts revised their earnings estimate higher in the last 60 days for PHM, while the Zacks Consensus Estimate has increased $1.12 to $12.89 per share. PHM also holds an average earnings surprise of 12.5%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding PHM to their portfolios.

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

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Zacks Investment Research