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Lennar (LEN) Increases Yet Falls Behind Market: What Investors Need to Know

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In the latest trading session, Lennar (LEN - Free Report) closed at $159.37, marking a +1.05% move from the previous day. The stock's change was less than the S&P 500's daily gain of 1.19%. On the other hand, the Dow registered a gain of 0.25%, and the technology-centric Nasdaq increased by 1.96%.

The the stock of homebuilder has fallen by 2.1% in the past month, lagging the Construction sector's loss of 1.84% and the S&P 500's gain of 3.35%.

The investment community will be closely monitoring the performance of Lennar in its forthcoming earnings report. The company is scheduled to release its earnings on June 17, 2024. The company is expected to report EPS of $3.20, up 8.84% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.54 billion, up 6.16% from the prior-year quarter.

LEN's full-year Zacks Consensus Estimates are calling for earnings of $14.46 per share and revenue of $35.78 billion. These results would represent year-over-year changes of +1.47% and +4.51%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lennar. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Lennar boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Lennar is presently trading at a Forward P/E ratio of 10.91. This valuation marks a premium compared to its industry's average Forward P/E of 8.51.

We can also see that LEN currently has a PEG ratio of 1.47. 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 was holding an average PEG ratio of 0.83 at yesterday's closing price.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 26, putting it in the top 11% 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.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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