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Should Value Investors Buy Lennar (LEN) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Lennar (LEN - Free Report) . LEN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 8.77, while its industry has an average P/E of 11.53. Over the past 52 weeks, LEN's Forward P/E has been as high as 12.14 and as low as 4.67, with a median of 10.22.

Investors should also note that LEN holds a PEG ratio of 0.82. 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. LEN's PEG compares to its industry's average PEG of 2.29. Within the past year, LEN's PEG has been as high as 3.76 and as low as 0.50, with a median of 1.

These are only a few of the key metrics included in Lennar's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, LEN looks like an impressive value stock at the moment.


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