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

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The most recent trading session ended with Lennar (LEN - Free Report) standing at $155, reflecting a +1.82% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 0.85%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 1.53%.

The homebuilder's stock has dropped by 6.22% in the past month, falling short of the Construction sector's loss of 5.58% and the S&P 500's gain of 3.11%.

Market participants will be closely following the financial results of Lennar in its upcoming release. The company plans to announce 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, the latest consensus estimate predicts the revenue to be $8.57 billion, indicating a 6.58% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.46 per share and a revenue of $35.78 billion, indicating changes of +1.47% and +4.51%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lennar. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Lennar holds a Zacks Rank of #3 (Hold).

Investors should also note Lennar's current valuation metrics, including its Forward P/E ratio of 10.53. This indicates a premium in contrast to its industry's Forward P/E of 8.24.

One should further note that LEN currently holds a PEG ratio of 1.42. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. LEN's industry had an average PEG ratio of 0.81 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 25, positioning it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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

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