For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Lennar (
LEN Quick Quote LEN - Free Report) ten years ago? It may not have been easy to hold on to LEN for all that time, but if you did, how much would your investment be worth today? Lennar's Business In-Depth
With that in mind, let's take a look at Lennar's main business drivers.
Founded in 1954 and based in Miami, FL, Lennar Corporation is engaged in homebuilding and financial services in the United States. The company’s reportable segments consist of Homebuilding, Lennar Financial Services, Rialto and Lennar Multifamily.
Despite the varied product portfolio, homebuilding remains Lennar’s core business. Homebuilding operations (accounting for 94.9% of fiscal 2022 total revenues) include the sale and construction of single-family attached and detached homes as well as the purchase, development and sale of residential land directly and through unconsolidated entities. Lennar’s reportable homebuilding segments consist of Homebuilding East, which covers Florida, Georgia, Maryland, New Jersey, North Carolina, South Carolina and Virginia; Homebuilding Central covers Arizona, Colorado and Texas; Homebuilding West covers California and Nevada; Homebuilding Other covers Illinois, Indiana, Minnesota, Oregon, Tennessee, Utah and Washington. However, Homebuilding Other is not considered a reportable segment. The Financial Services business (2.4%) includes mortgage financing, title insurance and closing services to the company’s homebuyers as well as others through Lennar’s financial services subsidiaries — Universal American Mortgage Company and Eagle Home Mortgage. Lennar Multi-Family (2.6%) is involved in the development, construction and property management of multi-family rental apartments in premium markets of California through unconsolidated entities. Lennar & Other (0.1%) includes operations primarily from the company's share of carried interests in Rialto fund investments, retained after the sale of Rialto's asset and investment management platform, along with equity in earnings/loss from Rialto fund investments and strategic technology investments, including other income (expense). Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Lennar ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in November 2013 would be worth $3,546.98, or a gain of 254.70%, as of November 30, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 152% and the price of gold increased 57.03% over the same time frame in comparison.
Going forward, analysts are expecting more upside for LEN.
Lennar is benefiting from digital marketing initiatives and a dynamic pricing model. Also, land-lighter strategy and effective cost-control measures are added positives. The company continues to emphasize refining its land acquisition and management, focusing on optimizing land and land bank strategy. Notably, Lennar successfully reduced land ownership on the balance sheet, with 73% of land now under control and only 26% owned, reflecting effective utilization of resources. Earnings estimates for fiscal 2023 have increased in the past 60 days, depicting analysts' optimism about the stock's growth potential. However, shares of the company have underperformed its industry in the year so far. Rising cost scenario and frequent interest rate hikes are primary concerns to its growth prospects.
The stock has jumped 14.04% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2023; the consensus estimate has moved up as well.