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Lennar (LEN) Suffers a Larger Drop Than the General Market: Key Insights
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The most recent trading session ended with Lennar (LEN - Free Report) standing at $126.84, reflecting a -0.62% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a loss of 0.2% for the day. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Prior to today's trading, shares of the homebuilder had gained 22.97% over the past month. This has outpaced the Construction sector's gain of 14.94% and the S&P 500's gain of 7.49% in that time.
The investment community will be closely monitoring the performance of Lennar in its forthcoming earnings report. The company is predicted to post an EPS of $4.63, indicating a 7.77% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $10.34 billion, reflecting a 1.59% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.59 per share and a revenue of $33.69 billion, signifying shifts of -22.56% and +0.07%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Lennar is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Lennar is currently trading at a Forward P/E ratio of 9.39. Its industry sports an average Forward P/E of 8.65, so one might conclude that Lennar is trading at a premium comparatively.
Investors should also note that LEN has a PEG ratio of 1.57 right now. 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 0.71 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 143, which puts it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Lennar (LEN) Suffers a Larger Drop Than the General Market: Key Insights
The most recent trading session ended with Lennar (LEN - Free Report) standing at $126.84, reflecting a -0.62% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a loss of 0.2% for the day. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Prior to today's trading, shares of the homebuilder had gained 22.97% over the past month. This has outpaced the Construction sector's gain of 14.94% and the S&P 500's gain of 7.49% in that time.
The investment community will be closely monitoring the performance of Lennar in its forthcoming earnings report. The company is predicted to post an EPS of $4.63, indicating a 7.77% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $10.34 billion, reflecting a 1.59% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.59 per share and a revenue of $33.69 billion, signifying shifts of -22.56% and +0.07%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Lennar is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Lennar is currently trading at a Forward P/E ratio of 9.39. Its industry sports an average Forward P/E of 8.65, so one might conclude that Lennar is trading at a premium comparatively.
Investors should also note that LEN has a PEG ratio of 1.57 right now. 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 0.71 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 143, which puts it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
You can find more information on all of these metrics, and much more, on Zacks.com.