Lennar (LEN) closed the latest trading day at $109.22, indicating a +1.53% change from the previous session's end. This change lagged the S&P 500's 2.03% gain on the day. On the other hand, the Dow registered a gain of 1.23%, and the technology-centric Nasdaq increased by 2.74%.
The the stock of homebuilder has fallen by 8.74% in the past month, lagging the Construction sector's loss of 6.28% and the S&P 500's loss of 5.07%.
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 $1.98, marking a 41.42% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $8.3 billion, indicating a 5.26% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.15 per share and a revenue of $36.09 billion, indicating changes of -26.77% and +1.84%, respectively, from the former year.
It is also important to note the recent changes 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 company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 6.37% lower. Lennar is currently sporting a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Lennar is currently trading at a Forward P/E ratio of 10.6. This signifies a premium in comparison to the average Forward P/E of 7.53 for its industry.
Investors should also note that LEN has a PEG ratio of 2.94 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 1.23.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 29% 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.
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Lennar Corporation (LEN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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