Lennar (LEN Quick QuoteLEN - Free Report) shares ended the last trading session 13.8% higher at $100.95. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2.7% loss over the past four weeks.

Shares of Lennar jumped after the company posted solid first-quarter fiscal 2021 results, with earnings and revenues increasing 60.6% and 18.2% year over year, respectively. Also, Lennar stated that it has plans to spin-off all or parts of non-core businesses to become a pure-play homebuilder and financial services company. It also aims to create a joint venture to provide single-family homes for rent.

Price and Consensus

This homebuilder is expected to post quarterly earnings of $2.12 per share in its upcoming report, which represents a year-over-year change of +41.3%. Revenues are expected to be $5.98 billion, up 13.2% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Lennar, the consensus EPS estimate for the quarter has been revised 5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on LEN going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>