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Is Lennar (LEN) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Lennar (LEN - Free Report) . LEN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.56, which compares to its industry's average of 11.35. Over the past year, LEN's Forward P/E has been as high as 12.14 and as low as 5.68, with a median of 9.93.

Investors should also note that LEN holds a PEG ratio of 1.10. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LEN's industry has an average PEG of 2.25 right now. Over the last 12 months, LEN's PEG has been as high as 3.76 and as low as 0.66, with a median of 1.10.

Value investors will likely look at more than just these metrics, but the above data helps show that Lennar is likely undervalued currently. And when considering the strength of its earnings outlook, LEN sticks out at as one of the market's strongest value stocks.


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