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Lennar (LEN) Beats Stock Market Upswing: What Investors Need to Know

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The most recent trading session ended with Lennar (LEN - Free Report) standing at $166.33, reflecting a +0.09% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.02%. Elsewhere, the Dow saw an upswing of 0.11%, while the tech-heavy Nasdaq depreciated by 0.26%.

Shares of the homebuilder witnessed a loss of 10.19% over the previous month, trailing the performance of the Construction sector with its gain of 2.39% and the S&P 500's gain of 2.99%.

The upcoming earnings release of Lennar will be of great interest to investors. The company is forecasted to report an EPS of $4.22, showcasing a 18.38% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $10.16 billion, indicating a 7.4% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $14.18 per share and revenue of $35.64 billion, which would represent changes of -0.49% and +4.11%, respectively, from the prior year.

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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Lennar is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Lennar currently has a Forward P/E ratio of 11.72. Its industry sports an average Forward P/E of 9.49, so one might conclude that Lennar is trading at a premium comparatively.

We can additionally observe that LEN currently boasts a PEG ratio of 1.56. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Building Products - Home Builders industry stood at 0.86 at the close of the market yesterday.

The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 79, positioning it in the top 32% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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