The most recent trading session ended with Lennar (LEN) trading at $183.65, representing a change of -0.74% from the previous trading day’s close. The stock lagged the S&P 500, which saw a daily loss of 0.32%. The Dow, meanwhile, saw a gain of 0.16%, and the tech-dominated Nasdaq saw a decline of 0.85%.
Heading into today, the homebuilder’s shares had gained 4.7% over the past month, outperforming the construction sector’s gain of 3.54% and the S&P 500’s gain of 1.52% during that time.
The investment community will be closely watching Lennar’s performance in its upcoming earnings report. The company’s earnings per share (EPS) is estimated at $3.65, down 6.65% from the year-ago quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.29 billion, up 6.4% from the year-ago period.
For the full fiscal year, the Zacks Consensus Estimates are projecting earnings of $14.16 per share and revenue of $35.74 billion, representing changes of -0.63% and +4.41%, respectively, from the prior year.
In addition, investors should pay attention to recent changes in analyst forecasts for Lennar. These changes show that short-term business trends are constantly changing. Consequently, upward revisions to forecasts express analysts’ positive view of the company’s operations and its ability to generate profits.
Research shows that these estimate changes are directly correlated with near-term stock price momentum. To capitalize on this, we have developed the Zacks Rank, an exclusive model that takes these estimate changes into account and provides an operating rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell) and has a proven, outside-audited track record of success, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus Estimate for earnings per share remained stagnant within the past month. Currently, Lennar carries a Zacks Rank of #3 (Hold).
From a valuation perspective, Lennar is currently trading at a P/E ratio of 13.07, which represents a premium to the industry P/E ratio of 10.11.
We can also note that LEN currently has a PEG ratio of 1.68. The PEG ratio is similar to the widely used P/E ratio, but it also takes into account the company’s expected earnings growth rate. The Building Products – Home Builders industry had an average PEG ratio of 1.01 as of yesterday’s close.
The Building Products – Homebuilding industry is part of the Construction sector. Currently, this industry has a Zacks Industry Rank of 24, putting it in the top 10% of over 250 industries.
The Zacks Industry Rank evaluates the strength of our individual industry groups by looking at the average Zacks Rank of the individual stocks that make up the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to track all of these and other stock-moving metrics in the coming trading sessions.
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Lennar Corporation (LEN): Free Stock Analysis Report
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