Lennar (LEN) ended the recent trading session at $133.27, demonstrating a -1.14% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.41%. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 0.44%.
The stock of homebuilder has risen by 16.07% in the past month, leading the Construction sector's gain of 1.31% and the S&P 500's gain of 0.87%.
The upcoming earnings release of Lennar will be of great interest to investors. The company is forecasted to report an EPS of $2.14, showcasing a 45.13% downward movement from the corresponding quarter of the prior year. 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 annual period, the Zacks Consensus Estimates anticipate earnings of $9.04 per share and a revenue of $35.22 billion, signifying shifts of -34.78% and -0.63%, respectively, from the last year.
Any recent changes to analyst estimates for Lennar should also be noted by investors. These revisions help to show the ever-changing nature of 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 presently features a Zacks Rank of #5 (Strong Sell).
With respect to valuation, Lennar is currently being traded at a Forward P/E ratio of 14.91. This signifies a premium in comparison to the average Forward P/E of 11.84 for its industry.
It is also worth noting that LEN currently has a PEG ratio of 5.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LEN's industry had an average PEG ratio of 2.59 as of yesterday's close.
The Building Products – Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 228, positioning it in the bottom 8% of all 250+ industries.
