Lennar (LEN) Stock Sinks As Market Gains: What You Should Know
Lennar (LEN) closed the latest trading day at $145.12, indicating a -1.67% change from the previous session's end. This change lagged the S&P 500's 0.08% gain on the day. On the other hand, the Dow registered a loss of 0.26%, and the technology-centric Nasdaq increased by 0.36%.
The homebuilder's shares have seen a decrease of 0.41% over the last month, surpassing the Construction sector's loss of 2.24% and falling behind the S&P 500's gain of 2.4%.
The investment community will be closely monitoring the performance of Lennar in its forthcoming earnings report. The company's upcoming EPS is projected at $2.21, signifying a 4.25% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $7.45 billion, reflecting a 14.73% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $14.36 per share and a revenue of $36.09 billion, representing changes of +0.77% and +5.42%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Lennar. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% lower. As of now, Lennar holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Lennar has a Forward P/E ratio of 10.28 right now. For comparison, its industry has an average Forward P/E of 9.55, which means Lennar is trading at a premium to the group.
We can also see that LEN currently has a PEG ratio of 1.92. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Home Builders was holding an average PEG ratio of 0.78 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 17, finds itself in the top 7% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Lennar Corporation (LEN) : Free Stock Analysis Report
