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Lennar (LEN) Completes SunStreet Solar Business Sale to Sunnova

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Lennar Corporation’s (LEN - Free Report) SunStreet Energy Group has been recently acquired by Sunnova Energy International Inc., one the major domestic solar and storage service providers.

In addition to the acquisition, Sunnova Energy has become Lennar’s sole residential solar and storage service provider for new home communities all over the country. Furthermore, this acquisition obligates Lennar to deliver tax equity investments to bear Sunnova’s homebuilder customer pipeline. Moreover, the partnership will emphasize on the development as well as rollout of innovative energy technologies like home storage and community microgrids.

SunStreet has a clear understanding of house-constructing operations and has built a fair reputation as a leader in the residential solar market over the years. The partnership will lead the way for SunStreet’s premium quality, convenient installation to new home builders. Also, SunStreet’s existing customers will have the option to choose from new energy services through the addition of battery storage and other basic Sunnova offerings.

Stuart Miller, Executive Chairman of Lennar, has said "This transaction, in exchange for Sunnova’s stock, represents a long-term investment by Lennar in the company that we believe is best suited to innovate and evolve in the dynamic and rapidly growing field of sustainable energy. We look forward to working with the exceptional team at Sunnova to build industry leading solar products for a better future.”

Share Price Performance

Lennar’s shares have surged 28.3% in the past six months compared with the industry’s 12% rally. Also, earnings estimates for 2021 have moved up over the past 30 days, depicting analysts' optimism over bottom-line growth potential. On a further encouraging note, the company has a robust earnings surprise history, having surpassed the Zacks Consensus Estimate in 12 of the trailing 14 quarters.

Lennar is engaged in homebuilding and financial services in the United States. Despite the varied product portfolio, homebuilding remains Lennar’s core business. Homebuilding operations (accounting for 93.3% of fiscal 2020 total revenues) include the sale and construction of single-family attached and detached homes as well as the purchase, development and sale of residential land directly and through unconsolidated entities.

Zacks Rank & Other Key Picks

Lennar currently carries a Zacks Rank #1 (Strong Buy).

A few other top-ranked stocks in the Zacks Building Products - Home Builders industry include KB Home (KBH - Free Report) , D.R. Horton, Inc. (DHI - Free Report) and PulteGroup, Inc. (PHM - Free Report) . KB Home carries a Zacks Rank #1, while D.R. Horton and PulteGroup have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

KB Homes and D.R. Horton’s earnings for fiscal 2021 are expected to rise 74.8% and 42.9%, respectively. Notably, PulteGroup’s 2021 earnings are expected to rise 18.7%.

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PulteGroup, Inc. (PHM) - free report >>

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Lennar Corporation (LEN) - free report >>

D.R. Horton, Inc. (DHI) - free report >>