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Lennar (LEN) Outpaces Stock Market Gains: What You Should Know

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Lennar (LEN - Free Report) closed at $107.29 in the latest trading session, marking a +1.36% move from the prior day. This move outpaced the S&P 500's daily gain of 0.82%.

Coming into today, shares of the homebuilder had gained 4.4% in the past month. In that same time, the Construction sector gained 1.36%, while the S&P 500 gained 0.89%.

Wall Street will be looking for positivity from LEN as it approaches its next earnings report date. In that report, analysts expect LEN to post earnings of $3.24 per share. This would mark year-over-year growth of 52.83%. Meanwhile, our latest consensus estimate is calling for revenue of $7.27 billion, up 23.83% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $13.54 per share and revenue of $28.54 billion, which would represent changes of +72.48% and +26.91%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for LEN. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 a Zacks Rank #1 (Strong Buy).

In terms of valuation, LEN is currently trading at a Forward P/E ratio of 7.82. For comparison, its industry has an average Forward P/E of 7.4, which means LEN is trading at a premium to the group.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 32, which puts it in the top 13% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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