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

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Lennar (LEN - Free Report) closed at $89.88 in the latest trading session, marking a -1.05% move from the prior day. This change lagged the S&P 500's daily loss of 0.24%. At the same time, the Dow lost 0.49%, and the tech-heavy Nasdaq lost 0.04%.

Coming into today, shares of the homebuilder had lost 2.77% in the past month. In that same time, the Construction sector lost 2.48%, while the S&P 500 gained 0.73%.

Investors will be hoping for strength from Lennar as it approaches its next earnings release. In that report, analysts expect Lennar to post earnings of $2.60 per share. This would mark year-over-year growth of 27.45%. Our most recent consensus estimate is calling for quarterly revenue of $6.19 billion, up 16.23% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.82 per share and revenue of $32.9 billion. These totals would mark changes of +10.86% and +21.28%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Lennar. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Lennar is currently a Zacks Rank #2 (Buy).

In terms of valuation, Lennar is currently trading at a Forward P/E ratio of 5.74. This represents a premium compared to its industry's average Forward P/E of 4.28.

Meanwhile, LEN's PEG ratio is currently 1.2. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Home Builders industry currently had an average PEG ratio of 0.52 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% 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.

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

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