Lennar (LEN) closed at $111.13 in the latest trading session, marking a +0.68% move from the prior day. This move outpaced the S&P 500’s daily gain of 0.34%. Meanwhile, the Dow lost 0.17%, and the Nasdaq, a tech-heavy index, lost 0.12%.
Coming into today, shares of the homebuilder had gained 7.98% in the past month. In that same time, the Construction sector gained 10.17%, while the S&P 500 gained 4.99%.
Lennar will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.14, up 46.81% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.53 billion, up 25.03% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.01 per share and revenue of $27.2 billion, which would represent changes of +78.47% and +20.97%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Lennar is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Lennar is holding a Forward P/E ratio of 7.88. Its industry sports an average Forward P/E of 7.31, so we one might conclude that Lennar is trading at a premium comparatively.
Meanwhile, LEN’s PEG ratio is currently 0.33. 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 industry currently had an average PEG ratio of 0.33 as of yesterday’s close.
The Building Products – Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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