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Lennar (LEN) Stock Moves -0.7%: What You Should Know

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In the latest trading session, Lennar (LEN - Free Report) closed at $81.04, marking a -0.7% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.15%. At the same time, the Dow lost 0.71%, and the tech-heavy Nasdaq lost 0.13%.

Coming into today, shares of the homebuilder had gained 13.36% in the past month. In that same time, the Construction sector gained 6.24%, while the S&P 500 gained 1.44%.

Investors will be hoping for strength from Lennar as it approaches its next earnings release. On that day, Lennar is projected to report earnings of $4.84 per share, which would represent year-over-year growth of 48.01%. Our most recent consensus estimate is calling for quarterly revenue of $8.97 billion, up 29.17% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $17.24 per share and revenue of $34.02 billion, which would represent changes of +20.81% and +25.41%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Lennar. 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.

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.

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 has moved 0.48% higher. Lennar is currently a Zacks Rank #3 (Hold).

Digging into valuation, Lennar currently has a Forward P/E ratio of 4.73. Its industry sports an average Forward P/E of 3.92, so we one might conclude that Lennar is trading at a premium comparatively.

Meanwhile, LEN's PEG ratio is currently 4.64. 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 was holding an average PEG ratio of 0.53 at yesterday's closing price.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 249, putting it in the bottom 2% 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 Zacks.com.


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