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Here's How Much You'd Have If You Invested $1000 in Lennar a Decade Ago
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Lennar (LEN - Free Report) ten years ago? It may not have been easy to hold on to LEN for all that time, but if you did, how much would your investment be worth today?
Lennar's Business In-Depth
With that in mind, let's take a look at Lennar's main business drivers.
Founded in 1954 and based in Miami, FL, Lennar Corporation is engaged in homebuilding and financial services in the United States. The company’s reportable segments consist of Homebuilding, Lennar Financial Services, Rialto and Lennar Multifamily.
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.
Lennar’s reportable homebuilding segments consist of Homebuilding East, which covers Florida, Georgia, Maryland, New Jersey, North Carolina, South Carolina and Virginia; Homebuilding Central covers Arizona, Colorado and Texas; Homebuilding West covers California and Nevada; Homebuilding Other covers Illinois, Indiana, Minnesota, Oregon, Tennessee, Utah and Washington. However, Homebuilding Other is not considered a reportable segment.
The Financial Services business (3.9%) includes mortgage financing, title insurance and closing services to the company’s homebuyers as well as others through Lennar’s financial services subsidiaries — Universal American Mortgage Company and Eagle Home Mortgage.
Lennar Multi-Family (2.6%),created in fourth-quarter 2013, is involved in the development, construction and property management of multi-family rental apartments in premium markets of California through unconsolidated entities.
Lennar & Other (0.2%): This segment includes operations primarily from the company's share of carried interests in the Rialto fund investments, retained after the sale of Rialto's asset and investment management platform, along with equity in earnings/loss from the Rialto fund investments and strategic technology investments, including other income (expense).
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Lennar ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in July 2011 would be worth $5,425.37, or a gain of 442.54%, as of July 2, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 222.46% and the price of gold increased 13.83% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for LEN.
Lennar’s shares have outperformed the industry year to date. The trend is likely to continue, given stellar performance in second-quarter fiscal 2021. The uptrend was due to solid execution of homebuilding and financial services businesses as well as robust housing market conditions. Its adjusted earnings and revenues topped the Zacks Consensus Estimate by 26.1% and 4.3%, respectively. These metrics also grew 96.7% and 21.6%, respectively, year over year, backed by higher revenues, effective cost control and focus on making its homebuilding platform more efficient. Notably, it has provided strong fiscal Q3 homebuilding gross margin guidance, suggesting 420 basis points (bps) increase at mid-point. Also, it has lifted average selling price and margin expectation for fiscal 2021, indicating 6% and 400 bps year-over-year growth.
Shares have gained 7.17% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Lennar a Decade Ago
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Lennar (LEN - Free Report) ten years ago? It may not have been easy to hold on to LEN for all that time, but if you did, how much would your investment be worth today?
Lennar's Business In-Depth
With that in mind, let's take a look at Lennar's main business drivers.
Founded in 1954 and based in Miami, FL, Lennar Corporation is engaged in homebuilding and financial services in the United States. The company’s reportable segments consist of Homebuilding, Lennar Financial Services, Rialto and Lennar Multifamily.
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.
Lennar’s reportable homebuilding segments consist of Homebuilding East, which covers Florida, Georgia, Maryland, New Jersey, North Carolina, South Carolina and Virginia; Homebuilding Central covers Arizona, Colorado and Texas; Homebuilding West covers California and Nevada; Homebuilding Other covers Illinois, Indiana, Minnesota, Oregon, Tennessee, Utah and Washington. However, Homebuilding Other is not considered a reportable segment.
The Financial Services business (3.9%) includes mortgage financing, title insurance and closing services to the company’s homebuyers as well as others through Lennar’s financial services subsidiaries — Universal American Mortgage Company and Eagle Home Mortgage.
Lennar Multi-Family (2.6%), created in fourth-quarter 2013, is involved in the development, construction and property management of multi-family rental apartments in premium markets of California through unconsolidated entities.
Lennar & Other (0.2%): This segment includes operations primarily from the company's share of carried interests in the Rialto fund investments, retained after the sale of Rialto's asset and investment management platform, along with equity in earnings/loss from the Rialto fund investments and strategic technology investments, including other income (expense).
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Lennar ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in July 2011 would be worth $5,425.37, or a gain of 442.54%, as of July 2, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 222.46% and the price of gold increased 13.83% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for LEN.
Lennar’s shares have outperformed the industry year to date. The trend is likely to continue, given stellar performance in second-quarter fiscal 2021. The uptrend was due to solid execution of homebuilding and financial services businesses as well as robust housing market conditions. Its adjusted earnings and revenues topped the Zacks Consensus Estimate by 26.1% and 4.3%, respectively. These metrics also grew 96.7% and 21.6%, respectively, year over year, backed by higher revenues, effective cost control and focus on making its homebuilding platform more efficient. Notably, it has provided strong fiscal Q3 homebuilding gross margin guidance, suggesting 420 basis points (bps) increase at mid-point. Also, it has lifted average selling price and margin expectation for fiscal 2021, indicating 6% and 400 bps year-over-year growth.
Shares have gained 7.17% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.