Lennar (LEN) Outperforms Broader Market: What You Need to Know
In This Article:
In the latest trading session, Lennar (LEN) closed at $106.07, marking a +0.78% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, added 0.39%.
The homebuilder's stock has dropped by 3.09% in the past month, falling short of the Construction sector's gain of 7.66% and the S&P 500's gain of 6.69%.
Advertisement: High Yield Savings Offers
The investment community will be paying close attention to the earnings performance of Lennar in its upcoming release. The company is predicted to post an EPS of $1.98, indicating a 41.42% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $8.3 billion, down 5.26% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.15 per share and a revenue of $36.09 billion, representing changes of -26.77% and +1.84%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Lennar. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 past month, the Zacks Consensus EPS estimate remained stagnant. At present, Lennar boasts a Zacks Rank of #4 (Sell).
In terms of valuation, Lennar is currently trading at a Forward P/E ratio of 10.37. Its industry sports an average Forward P/E of 9.27, so one might conclude that Lennar is trading at a premium comparatively.
Also, we should mention that LEN has a PEG ratio of 2.88. 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 1.71 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 225, putting it in the bottom 9% of all 250+ industries.