Lennar (LEN) Dips More Than Broader Market: What You Should Know
In the latest trading session, Lennar (LEN) closed at $149.60, marking a -0.6% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.56%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.59%.
Shares of the homebuilder have appreciated by 1.24% over the course of the past month, outperforming the Construction sector's loss of 1.43% and the S&P 500's gain of 1.2%.
Market participants will be closely following the financial results of Lennar in its upcoming release. The company is forecasted to report an EPS of $2.21, showcasing a 4.25% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.45 billion, up 14.73% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $14.36 per share and revenue of $36.09 billion, which would represent changes of +0.77% and +5.42%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Lennar. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 2.57% fall in the Zacks Consensus EPS estimate. As of now, Lennar holds a Zacks Rank of #3 (Hold).
In terms of valuation, Lennar is presently being traded at a Forward P/E ratio of 10.48. This represents a premium compared to its industry's average Forward P/E of 9.55.
Meanwhile, LEN's PEG ratio is currently 1.96. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 0.82.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 27, finds itself in the top 11% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Lennar Corporation (LEN) : Free Stock Analysis Report
