Lennar (LEN) ended the recent trading session at $88.16, demonstrating a +1.31% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.28% for the day. On the other hand, the Dow registered a gain of 0.26%, and the technology-centric Nasdaq decreased by 0.77%.
Coming into today, shares of the homebuilder had gained 2.81% in the past month. In that same time, the Construction sector lost 1.81%, while the S&P 500 gained 2.31%.
Market participants will be closely following the financial results of Lennar in its upcoming release. In that report, analysts expect Lennar to post earnings of $1.31 per share. This would mark a year-over-year decline of 34.5%. Alongside, our most recent consensus estimate is anticipating revenue of $8.33 billion, indicating a 5.42% downward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.46 per share and a revenue of $32.27 billion, signifying shifts of -32.26% and -5.6%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Lennar. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Lennar is holding a Zacks Rank of #5 (Strong Sell) right now.
Looking at its valuation, Lennar is holding a Forward P/E ratio of 15.94. Its industry sports an average Forward P/E of 14.47, so one might conclude that Lennar is trading at a premium comparatively.
Meanwhile, LEN's PEG ratio is currently 2.92. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Building Products - Home Builders industry held an average PEG ratio of 2.92.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 104, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Lennar Corporation (LEN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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