Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified PulteGroup as such a stock due to the following factors:
- PHM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $156.4 million.
- PHM has traded 1.5 million shares today.
- PHM is trading at 3.78 times the normal volume for the stock at this time of day.
- PHM is trading at a new high 3.06% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on PHM:
PulteGroup, Inc., through its subsidiaries, operates in the homebuilding business in the United States. It is involved in the acquisition and development of land primarily for residential purposes; and the construction of housing on lands. The stock currently has a dividend yield of 1.5%. PHM has a PE ratio of 16.8. Currently there are 8 analysts that rate PulteGroup a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for PulteGroup has been 5.7 million shares per day over the past 30 days. PulteGroup has a market cap of $7.8 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.67 and a short float of 3.5% with 1.84 days to cover. Shares are down 4.1% year-to-date as of the close of trading on Wednesday.
rates PulteGroup as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- PHM's revenue growth has slightly outpaced the industry average of 8.7%. Since the same quarter one year prior, revenues slightly increased by 0.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- PULTEGROUP INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, PULTEGROUP INC increased its bottom line by earning $6.74 versus $0.53 in the prior year. For the next year, the market is expecting a contraction of 84.0% in earnings ($1.08 versus $6.74).
- The gross profit margin for PULTEGROUP INC is rather low; currently it is at 23.73%. Regardless of PHM's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, PHM's net profit margin of 8.81% compares favorably to the industry average.
- You can view the full PulteGroup Ratings Report.