In the latest trading session, Lennar (LEN) closed at $84.11, marking a -2.57% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.33%. Meanwhile, the Dow lost 0.7%, and the Nasdaq, a tech-heavy index, lost 0.12%.
The homebuilder's stock has climbed by 4.83% in the past month, exceeding the Construction sector's loss of 4.75% and the S&P 500's gain of 3.87%.
Market participants will be closely following the financial results of Lennar in its upcoming release. The company's upcoming EPS is projected at $1.31, signifying a 34.50% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $8.33 billion, reflecting a 5.42% fall from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.46 per share and a revenue of $32.27 billion, representing changes of -32.26% and -5.6%, respectively, from the prior 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Lennar presently features a Zacks Rank of #4 (Sell).
Digging into valuation, Lennar currently has a Forward P/E ratio of 15.82. This indicates a premium in contrast to its industry's Forward P/E of 14.35.
We can also see that LEN currently has a PEG ratio of 2.9. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Building Products - Home Builders industry held an average PEG ratio of 2.9.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 92, positioning it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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Lennar Corporation (LEN) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).