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Lennar (LEN) Stock Moves -1.63%: What You Should Know

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In the latest trading session, Lennar (LEN - Free Report) closed at $158.47, marking a -1.63% move from the previous day. Meanwhile, the Dow gained 0.44%, and the Nasdaq, a tech-heavy index, lost 0.18%.

Prior to today's trading, shares of the homebuilder had lost 2.95% over the past month. This has lagged the Construction sector's loss of 2.29% and the S&P 500's loss of 0.22% in that time.

The upcoming earnings release of Lennar will be of great interest to investors. The company is predicted to post an EPS of $3.20, indicating an 8.84% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.54 billion, up 6.16% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $14.46 per share and a revenue of $35.78 billion, representing changes of +1.47% and +4.51%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Lennar. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.96% higher. Lennar is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Lennar is currently trading at a Forward P/E ratio of 11.14. For comparison, its industry has an average Forward P/E of 9.18, which means Lennar is trading at a premium to the group.

It's also important to note that LEN currently trades at a PEG ratio of 1.5. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Home Builders industry had an average PEG ratio of 0.77 as trading concluded yesterday.

The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 24, placing it within the top 10% of over 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.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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