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

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Zacks Equity Research
·3 min read
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Lennar (LEN) closed the most recent trading day at $85.44, moving +0.46% from the previous trading session. This change outpaced the S&P 500's 0.1% gain on the day. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq lost 0.02%.

Investors will be hoping for strength from LEN as it approaches its next earnings release. The company is expected to report EPS of $1.62, up 27.56% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.03 billion, up 11.73% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.50 per share and revenue of $24.91 billion. These totals would mark changes of +8.28% and +10.79%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for LEN. 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 currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, LEN is currently trading at a Forward P/E ratio of 9.91. This valuation marks a premium compared to its industry's average Forward P/E of 8.17.

It is also worth noting that LEN currently has a PEG ratio of 1.14. 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. LEN's industry had an average PEG ratio of 0.71 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 32, which puts it in the top 13% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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