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

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Lennar (LEN - Free Report) closed the most recent trading day at $104.45, moving -0.83% from the previous trading session. This change lagged the S&P 500's 0.85% gain on the day.

Coming into today, shares of the homebuilder had gained 2.39% in the past month. In that same time, the Construction sector gained 4.6%, while the S&P 500 gained 2.85%.

Investors will be hoping for strength from LEN as it approaches its next earnings release. On that day, LEN is projected to report earnings of $3.24 per share, which would represent year-over-year growth of 52.83%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.27 billion, up 23.83% from the year-ago period.

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.

Investors should also note any recent changes to analyst estimates for LEN. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. LEN is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, LEN is currently trading at a Forward P/E ratio of 7.78. This valuation marks a premium compared to its industry's average Forward P/E of 6.72.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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