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Lennar (LEN) Outpaces Stock Market Gains: What You Should Know

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Lennar (LEN) closed at $79.19 in the latest trading session, marking a +1.68% move from the prior day. This change outpaced the S&P 500's 0.48% gain on the day. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq lost 0.01%.

Coming into today, shares of the homebuilder had lost 5.38% in the past month. In that same time, the Construction sector lost 4.16%, while the S&P 500 lost 8.48%.

Wall Street will be looking for positivity from Lennar as it approaches its next earnings report date. On that day, Lennar is projected to report earnings of $3.99 per share, which would represent year-over-year growth of 35.25%. Our most recent consensus estimate is calling for quarterly revenue of $8.13 billion, up 26.38% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $16.33 per share and revenue of $34.12 billion, which would represent changes of +14.44% and +25.74%, respectively, from the prior year.

Any recent changes to analyst estimates for Lennar should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.63% lower. Lennar currently has a Zacks Rank of #3 (Hold).

Investors should also note Lennar's current valuation metrics, including its Forward P/E ratio of 4.77. Its industry sports an average Forward P/E of 4.06, so we one might conclude that Lennar is trading at a premium comparatively.

It is also worth noting that LEN currently has a PEG ratio of 4.68. 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. LEN's industry had an average PEG ratio of 0.57 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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