Lennar (LEN) closed at $114.02 in the latest trading session, marking a -1.17% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 1.97% for the day. Elsewhere, the Dow saw an upswing of 2.47%, while the tech-heavy Nasdaq appreciated by 2.18%.
Shares of the homebuilder witnessed a gain of 5.31% over the previous month, trailing the performance of the Construction sector with its gain of 7.04%, and outperforming the S&P 500's loss of 1.49%.
The investment community will be paying close attention to the earnings performance of Lennar in its upcoming release. It is anticipated that the company will report an EPS of $0.96, marking a 55.14% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $6.83 billion, down 10.47% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.44 per share and a revenue of $33 billion, signifying shifts of -20.1% and -3.48%, respectively, from the last year.
Investors should also take note of any recent adjustments 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 5.69% lower. Lennar is holding a Zacks Rank of #5 (Strong Sell) right now.
Valuation is also important, so investors should note that Lennar has a Forward P/E ratio of 17.91 right now. For comparison, its industry has an average Forward P/E of 13.93, which means Lennar is trading at a premium to the group.
We can additionally observe that LEN currently boasts a PEG ratio of 1.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Home Builders industry had an average PEG ratio of 2.14 as trading concluded yesterday.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 241, finds itself in the bottom 2% echelons 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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