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Lennar (LEN) closed the most recent trading day at $118.10, moving +1.52% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 2.13%. Meanwhile, the Dow gained 1.65%, and the Nasdaq, a tech-heavy index, added 2.61%.
Shares of the homebuilder have depreciated by 6% over the course of the past month, outperforming the Construction sector's loss of 9.59% and the S&P 500's loss of 9.57%.
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. The company's earnings per share (EPS) are projected to be $1.76, reflecting a 31.52% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $7.51 billion, reflecting a 2.7% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.48 per share and a revenue of $37.81 billion, indicating changes of -9.96% and +6.67%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Lennar. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Lennar is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note Lennar's current valuation metrics, including its Forward P/E ratio of 9.32. This valuation marks a premium compared to its industry's average Forward P/E of 7.89.
Also, we should mention that LEN has a PEG ratio of 1.18. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Building Products - Home Builders industry stood at 0.83 at the close of the market yesterday.