Lennar (LEN) closed at $125.19 in the latest trading session, marking a -0.75% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.55%. Elsewhere, the Dow saw an upswing of 0.52%, while the tech-heavy Nasdaq appreciated by 0.7%.
Prior to today's trading, shares of the homebuilder had lost 0.87% over the past month. This has was narrower than the Construction sector's loss of 8.2% and the S&P 500's loss of 5.56% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Lennar in its upcoming earnings disclosure. The company's earnings report is set to go public on March 20, 2025. 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, the Zacks Consensus Estimate for revenue is projecting net sales of $7.51 billion, up 2.7% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.48 per share and a revenue of $37.81 billion, representing changes of -9.96% and +6.67%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Lennar. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.33% lower within the past month. Lennar presently features a Zacks Rank of #4 (Sell).
With respect to valuation, Lennar is currently being traded at a Forward P/E ratio of 10.11. This indicates a premium in contrast to its industry's Forward P/E of 8.16.
Also, we should mention that LEN has a PEG ratio of 1.28. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Building Products - Home Builders industry stood at 0.92 at the close of the market yesterday.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 227, placing it within the bottom 10% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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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.
