Lennar (LEN) closed the latest trading day at $108.61, indicating a +0.96% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.15%. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq lost 0.09%.
The homebuilder's stock has dropped by 6.05% in the past month, falling short of the Construction sector's loss of 1.54% and the S&P 500's loss of 0.21%.
Analysts and investors alike will be keeping a close eye on the performance of Lennar in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.98, reflecting a 41.42% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $8.3 billion, down 5.26% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.15 per share and a revenue of $36.09 billion, signifying shifts of -26.77% and +1.84%, respectively, from the last year.
Any recent changes to analyst estimates for Lennar should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.92% downward. Currently, Lennar is carrying a Zacks Rank of #5 (Strong Sell).
Investors should also note Lennar's current valuation metrics, including its Forward P/E ratio of 10.6. This denotes a premium relative to the industry's average Forward P/E of 7.71.
We can also see that LEN currently has a PEG ratio of 2.94. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Building Products - Home Builders industry had an average PEG ratio of 1.25 as trading concluded yesterday.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 214, placing it within the bottom 14% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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