In the latest trading session, Lennar (LEN) closed at $60.45, marking a +1.72% move from the previous day. This change outpaced the S&P 500's 0.22% gain on the day. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.18%.
Coming into today, shares of the homebuilder had lost 1.39% in the past month. In that same time, the Construction sector gained 0.85%, while the S&P 500 gained 3.89%.
LEN will be looking to display strength as it nears its next earnings release. On that day, LEN is projected to report earnings of $1.90 per share, which would represent a year-over-year decline of 3.06%. Meanwhile, our latest consensus estimate is calling for revenue of $6.70 billion, up 3.67% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.49 per share and revenue of $21.83 billion. These totals would mark changes of -13.54% and +6.1%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for LEN. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 remained stagnant. LEN is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that LEN has a Forward P/E ratio of 10.82 right now. This valuation marks a premium compared to its industry's average Forward P/E of 10.57.
It is also worth noting that LEN currently has a PEG ratio of 1.2. 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 was holding an average PEG ratio of 1.17 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 26, which puts it in the top 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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