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Lennar (LEN) Stock Declines While Market Improves: Some Information for Investors
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The most recent trading session ended with Lennar (LEN - Free Report) standing at $118.72, reflecting a -0.92% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.18%. Meanwhile, the Dow experienced a rise of 0.1%, and the technology-dominated Nasdaq saw an increase of 0.3%.
Shares of the homebuilder witnessed a gain of 9.71% over the previous month, beating the performance of the Construction sector with its gain of 5.06% and the S&P 500's gain of 3.08%.
Investors will be eagerly watching for the performance of Lennar in its upcoming earnings disclosure. In that report, analysts expect Lennar to post earnings of $4.63 per share. This would mark a year-over-year decline of 7.77%. In the meantime, our current consensus estimate forecasts the revenue to be $10.34 billion, indicating a 1.59% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $13.59 per share and revenue of $33.69 billion, which would represent changes of -22.56% and +0.07%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Lennar. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.91% higher within the past month. As of now, Lennar holds a Zacks Rank of #2 (Buy).
In terms of valuation, Lennar is currently trading at a Forward P/E ratio of 8.82. This denotes a premium relative to the industry's average Forward P/E of 7.95.
One should further note that LEN currently holds a PEG ratio of 1.47. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Building Products - Home Builders industry had an average PEG ratio of 0.68 as trading concluded yesterday.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 26, finds itself in the top 11% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Lennar (LEN) Stock Declines While Market Improves: Some Information for Investors
The most recent trading session ended with Lennar (LEN - Free Report) standing at $118.72, reflecting a -0.92% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.18%. Meanwhile, the Dow experienced a rise of 0.1%, and the technology-dominated Nasdaq saw an increase of 0.3%.
Shares of the homebuilder witnessed a gain of 9.71% over the previous month, beating the performance of the Construction sector with its gain of 5.06% and the S&P 500's gain of 3.08%.
Investors will be eagerly watching for the performance of Lennar in its upcoming earnings disclosure. In that report, analysts expect Lennar to post earnings of $4.63 per share. This would mark a year-over-year decline of 7.77%. In the meantime, our current consensus estimate forecasts the revenue to be $10.34 billion, indicating a 1.59% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $13.59 per share and revenue of $33.69 billion, which would represent changes of -22.56% and +0.07%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Lennar. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.91% higher within the past month. As of now, Lennar holds a Zacks Rank of #2 (Buy).
In terms of valuation, Lennar is currently trading at a Forward P/E ratio of 8.82. This denotes a premium relative to the industry's average Forward P/E of 7.95.
One should further note that LEN currently holds a PEG ratio of 1.47. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Building Products - Home Builders industry had an average PEG ratio of 0.68 as trading concluded yesterday.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 26, finds itself in the top 11% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.