Lennar (LEN) Registers a Bigger Fall Than the Market: Important Facts to Note

In the latest trading session, Lennar (LEN) closed at $80.37, marking a -3.84% move from the previous day. This move lagged the S&P 500's daily loss of 0.58%. Meanwhile, the Dow lost 1.18%, and the Nasdaq, a tech-heavy index, lost 0.32%.

Shares of the homebuilder witnessed a loss of 2.36% over the previous month, beating the performance of the Construction sector with its loss of 7.66%, and underperforming the S&P 500's loss of 0.36%.

Investors will be eagerly watching for the performance of Lennar in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on September 16, 2026. The company's earnings per share (EPS) are projected to be $1.31, reflecting a 34.5% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $8.33 billion, showing a 5.42% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $5.48 per share and a revenue of $32.27 billion, demonstrating changes of -32.01% and -5.6%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Lennar. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Lennar is carrying a Zacks Rank of #4 (Sell).

Looking at valuation, Lennar is presently trading at a Forward P/E ratio of 15.25. For comparison, its industry has an average Forward P/E of 13.59, which means Lennar is trading at a premium to the group.

It's also important to note that LEN currently trades at a PEG ratio of 2.79. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 2.68.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 38% 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.

To follow LEN in the coming trading sessions, be sure to utilize Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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