In the latest market close, Lennar (LEN) reached $120.37, with a -0.95% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily loss of 1.59%. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 2.78%.
Shares of the homebuilder witnessed a loss of 8.1% over the previous month, beating the performance of the Construction sector with its loss of 10.85% and underperforming the S&P 500's loss of 2.23%.
The investment community will be paying close attention to the earnings performance of Lennar in its upcoming release. On that day, Lennar is projected to report earnings of $1.76 per share, which would represent a year-over-year decline of 31.52%. Meanwhile, our latest consensus estimate is calling for revenue of $7.51 billion, up 2.7% from the prior-year quarter.
LEN's full-year Zacks Consensus Estimates are calling for earnings of $12.48 per share and revenue of $37.81 billion. These results would represent year-over-year changes of -9.96% and +6.67%, respectively.
Any recent changes to analyst estimates for Lennar should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 moved 0.33% lower. As of now, Lennar holds a Zacks Rank of #4 (Sell).
Looking at valuation, Lennar is presently trading at a Forward P/E ratio of 9.74. This denotes a premium relative to the industry's average Forward P/E of 8.15.
It's also important to note that LEN currently trades at a PEG ratio of 1.23. 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. The Building Products - Home Builders was holding an average PEG ratio of 0.9 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 238, placing it within the bottom 6% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>Lennar Corporation (LEN) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
