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Lennar (LEN) Dips More Than Broader Markets: What You Should Know

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Lennar (LEN) closed at $75.39 in the latest trading session, marking a -1.78% move from the prior day. This change lagged the S&P 500's 0.4% loss on the day. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 0.19%.

Coming into today, shares of the homebuilder had lost 0.01% in the past month. In that same time, the Construction sector lost 4.04%, while the S&P 500 lost 9.39%.

Investors will be hoping for strength from Lennar as it approaches its next earnings release. The company is expected to report EPS of $3.99, up 35.25% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.13 billion, up 26.38% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.33 per share and revenue of $34.12 billion. These totals would mark changes of +14.44% and +25.74%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Lennar. These recent revisions tend to reflect the evolving nature of short-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. 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. Within the past 30 days, our consensus EPS projection has moved 0.63% lower. Lennar is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Lennar is holding a Forward P/E ratio of 4.7. This valuation marks a premium compared to its industry's average Forward P/E of 3.95.

It is also worth noting that LEN currently has a PEG ratio of 4.61. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 0.55 based on yesterday's closing prices.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% 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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