Lennar (LEN) ended the recent trading session at $133.13, demonstrating a +2.62% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.3%. Meanwhile, the Dow experienced a rise of 0.86%, and the technology-dominated Nasdaq saw an increase of 0.17%.
Shares of the homebuilder witnessed a gain of 6.64% over the previous month, beating the performance of the Construction sector with its loss of 1.55%, and the S&P 500's loss of 0.06%.
Market participants will be closely following the financial results of Lennar in its upcoming release. It is anticipated that the company will report an EPS of $2.3, marking a 42.93% fall compared to the same quarter of the previous 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 full year, the Zacks Consensus Estimates project earnings of $8.25 per share and a revenue of $33.96 billion, demonstrating changes of -40.48% and 0%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Lennar. These revisions help to show the ever-changing nature of near-term business trends. 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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Lennar currently has a Zacks Rank of #4 (Sell).
Looking at valuation, Lennar is presently trading at a Forward P/E ratio of 14.4. This indicates a premium in contrast to its industry's Forward P/E of 12.14.
It is also worth noting that LEN currently has a PEG ratio of 5.53. 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 average PEG ratio for the Building Products - Home Builders industry stood at 1.89 at the close of the market yesterday.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 213, which puts it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Lennar Corporation (LEN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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