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

·3-min read

In the latest trading session, Lennar (LEN) closed at $91.73, marking a -1.52% move from the previous day. This change lagged the S&P 500's daily loss of 0.54%. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq lost 0.12%.

Heading into today, shares of the homebuilder had lost 19.77% over the past month, lagging the Construction sector's loss of 12.62% and the S&P 500's loss of 7.87% in that time.

Lennar will be looking to display strength as it nears its next earnings release. In that report, analysts expect Lennar to post earnings of $2.60 per share. This would mark year-over-year growth of 27.45%. Meanwhile, our latest consensus estimate is calling for revenue of $6.19 billion, up 16.23% from the prior-year quarter.

LEN's full-year Zacks Consensus Estimates are calling for earnings of $15.82 per share and revenue of $32.9 billion. These results would represent year-over-year changes of +10.86% and +21.28%, respectively.

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, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 1.44% higher. Lennar is currently a Zacks Rank #2 (Buy).

Looking at its valuation, Lennar is holding a Forward P/E ratio of 5.89. Its industry sports an average Forward P/E of 4.9, so we one might conclude that Lennar is trading at a premium comparatively.

Meanwhile, LEN's PEG ratio is currently 0.95. 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 0.24 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 33, putting it in the top 13% 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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