In the latest close session, Lennar (LEN) was down 3.15% at $124.18. Elsewhere, the Dow lost 0.16%, while the tech-heavy Nasdaq added 0.55%.
Heading into today, shares of the homebuilder had gained 1.73% over the past month, outpacing the Construction sector's gain of 0.86% and lagging the S&P 500's gain of 3.83%.
The upcoming earnings release of Lennar will be of great interest to investors. The company is predicted to post an EPS of $2.3, indicating a 42.93% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $9.15 billion, reflecting a 7.97% fall from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.25 per share and a revenue of $33.96 billion, representing changes of -40.48% and -4.18%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Lennar. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.82% lower. Currently, Lennar is carrying a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Lennar is currently trading at a Forward P/E ratio of 15.54. This valuation marks a premium compared to its industry average Forward P/E of 11.91.
Meanwhile, LEN's PEG ratio is currently 5.97. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. LEN's industry had an average PEG ratio of 3.2 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 198, finds itself in the bottom 20% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Lennar Corporation (LEN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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