Lennar (LEN) closed the most recent trading day at $121.24, moving -2.33% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 1.66% for the day. Elsewhere, the Dow saw a downswing of 1.65%, while the tech-heavy Nasdaq depreciated by 2.29%.
Shares of the homebuilder witnessed a gain of 1.38% over the previous month, beating the performance of the Construction sector with its gain of 1.17%, and underperforming the S&P 500's gain of 4.64%.
Investors will be eagerly watching for the performance of Lennar in its upcoming earnings disclosure. On that day, Lennar is projected to report earnings of $2.3 per share, which would represent a year-over-year decline of 42.93%. In the meantime, our current consensus estimate forecasts the revenue to be $9.15 billion, indicating a 7.97% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.25 per share and revenue of $33.96 billion, which would represent changes of -40.48% and -4.18%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Lennar. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Lennar is carrying a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Lennar has a Forward P/E ratio of 15.05 right now. This indicates a premium in contrast to its industry's Forward P/E of 11.73.
We can also see that LEN currently has a PEG ratio of 5.78. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Home Builders industry currently had an average PEG ratio of 1.74 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 203, which puts it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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