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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 $152.50, reflecting a -0.98% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a loss of 0.32% for the day. On the other hand, the Dow registered a loss of 0.71%, and the technology-centric Nasdaq decreased by 0.2%.

Heading into today, shares of the homebuilder had gained 5.29% over the past month, outpacing the Construction sector's gain of 2.55% and the S&P 500's gain of 4.59% in that time.

The investment community will be paying close attention to the earnings performance of Lennar in its upcoming release. In that report, analysts expect Lennar to post earnings of $2.21 per share. This would mark year-over-year growth of 4.25%. Meanwhile, our latest consensus estimate is calling for revenue of $7.44 billion, up 14.7% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $14.36 per share and a revenue of $36.09 billion, demonstrating changes of +0.77% and +5.42%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Lennar. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. Lennar currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Lennar currently has a Forward P/E ratio of 10.73. This indicates a premium in contrast to its industry's Forward P/E of 9.64.

Also, we should mention that LEN has a PEG ratio of 2.01. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 0.83.

The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 37, positioning it in the top 15% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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