For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Lennar (LEN - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.
Lennar is one of 104 companies in the Construction group. The Construction group currently sits at #1 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. LEN is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for LEN's full-year earnings has moved 15.78% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, LEN has returned 49.35% so far this year. In comparison, Construction companies have returned an average of 12.46%. This means that Lennar is performing better than its sector in terms of year-to-date returns.
Breaking things down more, LEN is a member of the Building Products - Home Builders industry, which includes 16 individual companies and currently sits at #5 in the Zacks Industry Rank. On average, this group has gained an average of 37.55% so far this year, meaning that LEN is performing better in terms of year-to-date returns.
Going forward, investors interested in Construction stocks should continue to pay close attention to LEN as it looks to continue its solid performance.