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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 $74.15, moving -0.39% from the previous trading session. This change lagged the S&P 500's daily gain of 1.86%. At the same time, the Dow added 1.98%, and the tech-heavy Nasdaq gained 0.24%.

Prior to today's trading, shares of the homebuilder had lost 3.3% over the past month. This has was narrower than the Construction sector's loss of 7.95% and the S&P 500's loss of 12.37% in that time.

Wall Street will be looking for positivity from Lennar as it approaches its next earnings report date. In that report, analysts expect Lennar to post earnings of $3.99 per share. This would mark year-over-year growth of 35.25%. Meanwhile, our latest consensus estimate is calling for revenue of $8.13 billion, up 26.38% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.33 per share and revenue of $34.12 billion. These totals would mark changes of +14.44% and +25.74%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Lennar. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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

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. The Zacks Consensus EPS estimate has moved 0.63% lower within the past month. Lennar is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Lennar is holding a Forward P/E ratio of 4.56. Its industry sports an average Forward P/E of 3.89, so we one might conclude that Lennar is trading at a premium comparatively.

Meanwhile, LEN's PEG ratio is currently 4.47. 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. The Building Products - Home Builders industry currently had an average PEG ratio of 0.47 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% 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.

You can find more information on all of these metrics, and much more, on

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