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Lennar (LEN) Surpasses Market Returns: Some Facts Worth Knowing

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The latest trading session saw Lennar (LEN - Free Report) ending at $153.87, denoting a +1.44% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.96%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, added 1.3%.

The the stock of homebuilder has risen by 0.78% in the past month, lagging the Construction sector's gain of 2.67% and the S&P 500's gain of 3.69%.

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 $2.21, indicating a 4.25% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $7.44 billion, showing a 14.7% escalation compared to the year-ago quarter.

LEN's full-year Zacks Consensus Estimates are calling for earnings of $14.36 per share and revenue of $36.09 billion. These results would represent year-over-year changes of +0.77% and +5.42%, respectively.

Investors should also note any recent changes to analyst estimates for Lennar. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.01% rise in the Zacks Consensus EPS estimate. Lennar presently features a Zacks Rank of #3 (Hold).

Investors should also note Lennar's current valuation metrics, including its Forward P/E ratio of 10.56. This signifies a premium in comparison to the average Forward P/E of 8.71 for its industry.

It's also important to note that LEN currently trades at a PEG ratio of 1.98. 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 average PEG ratio for the Building Products - Home Builders industry stood at 0.81 at the close of the market yesterday.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 34, putting it in the top 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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