Lennar (LEN) ended the recent trading session at $115.33, demonstrating a +1.6% change from the preceding day's closing price. This change outpaced the S&P 500's 0.4% gain on the day. Meanwhile, the Dow experienced a rise of 0.47%, and the technology-dominated Nasdaq saw an increase of 0.24%.
The stock of homebuilder has risen by 3.37% in the past month, lagging the Construction sector's gain of 6.97% and the S&P 500's gain of 4.61%.
The investment community will be closely monitoring the performance of Lennar in its forthcoming earnings report. The company is expected to report EPS of $2.14, down 45.13% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $9.07 billion, indicating a 3.7% decline compared to the corresponding quarter of the prior year.
LEN's full-year Zacks Consensus Estimates are calling for earnings of $9.04 per share and revenue of $35.22 billion. These results would represent year-over-year changes of -34.78% and -0.63%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Lennar. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 5.31% lower within the past month. Lennar is currently sporting a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Lennar currently has a Forward P/E ratio of 12.55. This signifies a premium in comparison to the average Forward P/E of 10.13 for its industry.
Meanwhile, LEN's PEG ratio is currently 4.82. 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. The average PEG ratio for the Building Products – Home Builders industry stood at 2.22 at the close of the market yesterday.
