Lennar (LEN) closed at $120.57 in the latest trading session, marking a -1.73% move from the prior day. The stock's change was less than the S&P 500's daily loss of 1.71%. Meanwhile, the Dow experienced a drop of 1.7%, and the technology-dominated Nasdaq saw a decrease of 2.2%.
The the stock of homebuilder has fallen by 8.79% in the past month, lagging the Construction sector's loss of 6.25% and the S&P 500's gain of 2.2%.
Market participants will be closely following the financial results of Lennar in its upcoming release. The company's earnings per share (EPS) are projected to be $1.76, reflecting a 31.52% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $7.51 billion, indicating a 2.7% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $12.48 per share and a revenue of $37.81 billion, demonstrating changes of -9.96% and +6.67%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Lennar. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.18% lower within the past month. Currently, Lennar is carrying a Zacks Rank of #4 (Sell).
From a valuation perspective, Lennar is currently exchanging hands at a Forward P/E ratio of 9.83. This expresses a premium compared to the average Forward P/E of 8.46 of its industry.
We can additionally observe that LEN currently boasts a PEG ratio of 1.24. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. LEN's industry had an average PEG ratio of 0.92 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 243, placing it within the bottom 4% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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