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Lennar (LEN) Moves 12.6% Higher: Will This Strength Last?
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Lennar (LEN - Free Report) shares rallied 12.6% in the last trading session to close at $88.40. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 2.6% gain over the past four weeks.
Lennar and other homebuilder stocks rallied as a slowdown in the pace of inflation raised hopes that the Federal Reserve may start reversing the pace of its interest-rate hikes.
This homebuilder is expected to post quarterly earnings of $4.94 per share in its upcoming report, which represents a year-over-year change of +13.3%. Revenues are expected to be $10.28 billion, up 21.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Lennar, the consensus EPS estimate for the quarter has been revised 0.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on LEN going forward to see if this recent jump can turn into more strength down the road.
Lennar is part of the Zacks Building Products - Home Builders industry. Toll Brothers (TOL - Free Report) , another stock in the same industry, closed the last trading session 11% higher at $46.52. TOL has returned -2.3% in the past month.
For Toll Brothers, the consensus EPS estimate for the upcoming report has changed -12.6% over the past month to $3.93. This represents a change of +30.1% from what the company reported a year ago. Toll Brothers currently has a Zacks Rank of #5 (Strong Sell).
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Lennar (LEN) Moves 12.6% Higher: Will This Strength Last?
Lennar (LEN - Free Report) shares rallied 12.6% in the last trading session to close at $88.40. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 2.6% gain over the past four weeks.
Lennar and other homebuilder stocks rallied as a slowdown in the pace of inflation raised hopes that the Federal Reserve may start reversing the pace of its interest-rate hikes.
This homebuilder is expected to post quarterly earnings of $4.94 per share in its upcoming report, which represents a year-over-year change of +13.3%. Revenues are expected to be $10.28 billion, up 21.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Lennar, the consensus EPS estimate for the quarter has been revised 0.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on LEN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Lennar is part of the Zacks Building Products - Home Builders industry. Toll Brothers (TOL - Free Report) , another stock in the same industry, closed the last trading session 11% higher at $46.52. TOL has returned -2.3% in the past month.
For Toll Brothers, the consensus EPS estimate for the upcoming report has changed -12.6% over the past month to $3.93. This represents a change of +30.1% from what the company reported a year ago. Toll Brothers currently has a Zacks Rank of #5 (Strong Sell).