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Lennar (LEN) Gains But Lags Market: What You Should Know

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Lennar (LEN) closed the most recent trading day at $99.71, moving +1.01% from the previous trading session. This move lagged the S&P 500's daily gain of 1.49%.

Heading into today, shares of the homebuilder had lost 4.09% over the past month, lagging the Construction sector's gain of 2.98% and the S&P 500's loss of 0.62% in that time.

LEN will be looking to display strength as it nears its next earnings release. In that report, analysts expect LEN to post earnings of $2.34 per share. This would mark year-over-year growth of 56%. Our most recent consensus estimate is calling for quarterly revenue of $6.06 billion, up 14.65% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.98 per share and revenue of $26.51 billion, which would represent changes of +39.87% and +17.87%, respectively, from the prior year.

Any recent changes to analyst estimates for LEN should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. LEN is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that LEN has a Forward P/E ratio of 8.99 right now. This valuation marks a premium compared to its industry's average Forward P/E of 8.9.

Meanwhile, LEN's PEG ratio is currently 0.92. 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 currently had an average PEG ratio of 0.7 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 35, which puts it in the top 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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