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Lennar (LEN) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Lennar (LEN - Free Report) closed at $100.90, marking a -1.46% move from the previous day. This move lagged the S&P 500's daily loss of 0.02%.

Coming into today, shares of the homebuilder had gained 3.19% in the past month. In that same time, the Construction sector lost 0.56%, while the S&P 500 gained 2.91%.

LEN will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.24, up 52.83% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.27 billion, up 23.83% from the prior-year quarter.

LEN's full-year Zacks Consensus Estimates are calling for earnings of $13.54 per share and revenue of $28.54 billion. These results would represent year-over-year changes of +72.48% and +26.91%, respectively.

Any recent changes to analyst estimates for LEN should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. LEN is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note LEN's current valuation metrics, including its Forward P/E ratio of 7.56. Its industry sports an average Forward P/E of 6.95, so we one might conclude that LEN is trading at a premium comparatively.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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