Lennar (LEN) closed at $131.95 in the latest trading session, marking a +1.15% move from the prior day. This move outpaced the S&P 500's daily loss of 0.29%. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq depreciated by 0.4%.
Heading into today, shares of the homebuilder had gained 18.92% over the past month, outpacing the Construction sector's gain of 6.32% and the S&P 500's gain of 3.25%.
The upcoming earnings release of Lennar will be of great interest to investors. In that report, analysts expect Lennar to post earnings of $2.14 per share. This would mark a year-over-year decline of 45.13%. At the same time, our most recent consensus estimate is projecting a revenue of $9.07 billion, reflecting a 3.7% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $9.04 per share and a revenue of $35.22 billion, demonstrating changes of -34.78% and -0.63%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Lennar. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Lennar is holding a Zacks Rank of #5 (Strong Sell) right now.
From a valuation perspective, Lennar is currently exchanging hands at a Forward P/E ratio of 14.43. This expresses a premium compared to the average Forward P/E of 11.73 of its industry.
We can also see that LEN currently has a PEG ratio of 5.54. 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 2.53.
The Building Products – Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 229, positioning it in the bottom 8% of all 250+ industries.
