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Lennar (LEN) Advances While Market Declines: Some Information for Investors

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In the latest trading session, Lennar (LEN - Free Report) closed at $150.99, marking a +0.51% move from the previous day. This change outpaced the S&P 500's 0.6% loss on the day. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq lost 0.92%.

The homebuilder's shares have seen a decrease of 3.25% over the last month, not keeping up with the Construction sector's gain of 4.17% and the S&P 500's gain of 3.56%.

The investment community will be closely monitoring the performance of Lennar in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.21, marking a 4.25% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $7.44 billion, indicating a 14.7% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.36 per share and revenue of $36.09 billion, indicating changes of +0.77% and +5.42%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for Lennar. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. Currently, Lennar is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Lennar is presently being traded at a Forward P/E ratio of 10.46. This signifies a premium in comparison to the average Forward P/E of 8.66 for its industry.

It is also worth noting that LEN currently has a PEG ratio of 1.96. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 0.8.

The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 14, placing it within the top 6% of over 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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