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

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In the latest trading session, Lennar (LEN - Free Report) closed at $109.75, marking a -0.86% move from the previous day. This move lagged the S&P 500's daily gain of 0.23%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq added 0.09%.

Heading into today, shares of the homebuilder had gained 10.2% over the past month, outpacing the Construction sector's gain of 7.32% and the S&P 500's gain of 3.34% in that time.

Wall Street will be looking for positivity from Lennar as it approaches its next earnings report date. On that day, Lennar is projected to report earnings of $4.14 per share, which would represent year-over-year growth of 46.81%. Our most recent consensus estimate is calling for quarterly revenue of $8.53 billion, up 25.03% from the year-ago period.

LEN's full-year Zacks Consensus Estimates are calling for earnings of $14.01 per share and revenue of $27.2 billion. These results would represent year-over-year changes of +78.47% and +20.97%, respectively.

Investors should also note any recent changes to analyst estimates for Lennar. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Lennar is currently a Zacks Rank #3 (Hold).

Investors should also note Lennar's current valuation metrics, including its Forward P/E ratio of 7.9. For comparison, its industry has an average Forward P/E of 7.19, which means Lennar is trading at a premium to the group.

It is also worth noting that LEN currently has a PEG ratio of 0.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 0.33 based on yesterday's closing prices.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% 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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