Lennar (LEN) Gains As Market Dips: What You Should Know
Lennar (LEN) ended the recent trading session at $151.07, demonstrating a +1% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.06%. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq lost 0.76%.
The the stock of homebuilder has risen by 0.36% in the past month, leading the Construction sector's loss of 0.85% and undershooting the S&P 500's gain of 3.36%.
Analysts and investors alike will be keeping a close eye on the performance of Lennar in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.21, signifying a 4.25% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $7.45 billion, showing a 14.73% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $14.36 per share and a revenue of $36.09 billion, representing changes of +0.77% and +5.42%, respectively, from the prior year.
Any recent changes to analyst estimates for Lennar should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Lennar possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Lennar currently has a Forward P/E ratio of 10.42. This represents a premium compared to its industry's average Forward P/E of 9.83.
Meanwhile, LEN's PEG ratio is currently 1.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Building Products - Home Builders industry held an average PEG ratio of 0.78.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 31, this industry ranks in the top 13% of all industries, numbering over 250.
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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Lennar Corporation (LEN) : Free Stock Analysis Report
