Yahoo Finance Lennar (LEN) Laps the Stock Market: Here's Why
Lennar (LEN) closed the latest trading day at $155.21, indicating a +1.8% change from the previous session's end. This change outpaced the S&P 500's 0.91% gain on the day. On the other hand, the Dow registered a gain of 0.85%, and the technology-centric Nasdaq increased by 1.51%.
The the stock of homebuilder has fallen by 8.2% in the past month, lagging the Construction sector's loss of 6.97% and the S&P 500's loss of 4.2%.
The investment community will be closely monitoring the performance of Lennar in its forthcoming earnings report. The company is forecasted to report an EPS of $3.20, showcasing an 8.84% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $8.54 billion, up 6.16% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.46 per share and a revenue of $35.78 billion, indicating changes of +1.47% and +4.51%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Lennar. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.51% higher within the past month. Lennar is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Lennar is currently being traded at a Forward P/E ratio of 10.55. For comparison, its industry has an average Forward P/E of 8.71, which means Lennar is trading at a premium to the group.
Investors should also note that LEN has a PEG ratio of 1.42 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Building Products - Home Builders industry held an average PEG ratio of 0.84.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 20, placing it within the top 8% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Lennar Corporation (LEN) : Free Stock Analysis Report
