Lennar (LEN) closed the most recent trading day at $108.41, moving -1.99% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.94% for the day. Elsewhere, the Dow lost 0.83%, while the tech-heavy Nasdaq lost 1.02%.
The stock of homebuilder has risen by 1.66% in the past month, lagging the Construction sector's gain of 6.21% and overreaching the S&P 500's loss of 1.3%.
Analysts and investors alike will be keeping a close eye on the performance of Lennar in its upcoming earnings disclosure. The company's earnings report is set to go public on March 12, 2026. The company is expected to report EPS of $0.96, down 55.14% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $6.83 billion, showing a 10.47% drop compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.44 per share and revenue of $33 billion. These totals would mark changes of -20.1% and -3.48%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Lennar. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Lennar is carrying a Zacks Rank of #4 (Sell).
In terms of valuation, Lennar is presently being traded at a Forward P/E ratio of 17.17. This valuation marks a premium compared to its industry average Forward P/E of 14.22.
One should further note that LEN currently holds a PEG ratio of 1.61. 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 1.73 as trading concluded yesterday.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 232, this industry ranks in the bottom 6% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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