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

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  • LEN-B

Lennar (LEN) closed at $101.42 in the latest trading session, marking a -0.78% move from the prior day. This change lagged the S&P 500's daily gain of 0.3%.

Prior to today's trading, shares of the homebuilder had gained 4.23% over the past month. This has outpaced the Construction sector's gain of 3.49% and lagged the S&P 500's gain of 4.28% in that time.

LEN will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.14, up 46.81% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.53 billion, up 25.03% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $13.86 per share and revenue of $27.2 billion, which would represent changes of +76.56% and +20.97%, respectively, from the prior 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. The Zacks Consensus EPS estimate has moved 2.01% lower within the past month. LEN is currently a Zacks Rank #3 (Hold).

In terms of valuation, LEN is currently trading at a Forward P/E ratio of 7.38. This represents a premium compared to its industry's average Forward P/E of 6.86.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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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Lennar Corporation (LEN) : Free Stock Analysis Report
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