On Thursday, PulteGroup posted second-quarter earnings that beat analysts’ expectations.
The home construction company’s second quarter earnings came in at an adjusted $1.15 a share, exceeding the 87 cents a share expected by analysts polled by FactSet.
Revenue climbed +4.2% year-over-year to $2.59 billion, compared to $2.53 billion expected by analysts surveyed by FactSet.
Home-sales revenue revealed a +6% increase in closings, to 5,937 homes. However, the increase was partly offset by a -3% decrease in average sales price to $416,000.
Net new orders fell -4% year over year to 6,522 homes with an average sales price of $410,000, down from $426,000 in the year-ago period.
PulteGroup said it paid down the $700 million it had borrowed as a precaution in March when the coronavirus pandemic broke out.
According to Tickeron, PHM in +4.95% Uptrend, advancing for three consecutive days on July 22, 2020
As a Bullish sign, keep an eye on this company's ticker for future growth. Considering data from situations where PHM advanced for three days, in 237 of 347 cases, the price rose further within the following month. The odds of a continued Uptrend are 68%.
Current price $41.31 crossed the resistance line at $40.67 and is trading between $42.10 resistance and $40.67 resistance lines. Throughout the month of 06/19/20 - 07/22/20, the price experienced a +14% Uptrend. During the week of 07/15/20 - 07/22/20, the stock enjoyed a +9% Uptrend growth.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator exceeded the 0 level on July 08, 2020. Traders may consider buying the ticker or exploring call options. In 64 of 94 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 68%.
The Moving Average Convergence Divergence (MACD) just turned positive. Considering data from situations where PHM's MACD histogram became positive, in 32 of 48 cases, the price rose further within the following month. The odds of a continued Uptrend are 67%.
Bearish Trend Analysis
The RSI Indicator demonstrated that the ticker has entered the overbought zone. Expect a price pull-back in the near future.
The Stochastic Indicator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 30 of 54 cases where PHM's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 56%.
The Aroon Indicator entered a Downtrend today. In 79 of 110 cases where PHM Aroon's Indicator entered a Downtrend, the price fell further within the following month. The odds of a continued Downtrend are 72%.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 64%. During the last month, the daily ratio of advancing to declining volumes was 1.59 to 1.
The Tickeron Valuation Rating of 25 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.91) is normal, around the industry mean (1.28). P/E Ratio (10.33) is within average values for comparable stocks, (16.79). Projected Growth (PEG Ratio) (0.79) is also within normal values, averaging (0.75). PHM has a moderately high Dividend Yield (1.16) as compared to the industry average of (0.32). P/S Ratio (0.58) is also within normal values, averaging (0.59).
The Tickeron Price Growth Rating for this company is 39 (best 1 - 100 worst), indicating fairly steady price growth. PHM’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 42 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 43 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 67, placing this stock slightly better than average.
The Tickeron SMR rating for this company is 53 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.