Lennar (LEN) Stock Moves -0.7%: What You Should Know
Lennar (LEN) closed at $112.32 in the latest trading session, marking a -0.7% move from the prior day. This change was narrower than the S&P 500's 0.85% loss on the day. Meanwhile, the Dow lost 0.17%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Prior to today's trading, shares of the homebuilder had gained 11.55% over the past month. This has outpaced the Construction sector's gain of 4.29% and the S&P 500's loss of 0.97% in that time.
Investors will be hoping for strength from Lennar as it approaches its next earnings release. In that report, analysts expect Lennar to post earnings of $4.14 per share. This would mark year-over-year growth of 46.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.53 billion, up 25.03% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Lennar. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Lennar currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Lennar is holding a Forward P/E ratio of 7.54. For comparison, its industry has an average Forward P/E of 6.72, which means Lennar is trading at a premium to the group.
It is also worth noting that LEN currently has a PEG ratio of 0.32. 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 0.32 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 72, which puts it in the top 29% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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