Lennar, one of the largest homebuilders in the United States, is set to report fiscal fourth-quarter earnings results on Tuesday after the closing bell. A Zacks Rank #3 (Hold), Lennar has missed the earnings mark in three of the past four quarters. But with homebuilder stocks rallying lately amid interest rate cuts, is LEN a buy prior to the release?

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Analysts are expecting the company to post a profit of $2.23 per share, reflecting negative growth of -44.7% versus the same quarter last year. Sales are projected to have declined -8.3% to $9.13 billion during the quarter.

Lennar has evolved from a traditional homebuilder into a tech-enabled manufacturing platform. The company aims to unlock scalable efficiencies and modernize its operating model.

Still, ongoing pressures on margins and housing affordability remain key concerns. Despite a recent rally, Lennar (LEN Quick QuoteLEN - Free Report) shares have shed roughly 11% this year and are underperforming the major indexes. Investors would be wise to exercise caution ahead of the upcoming announcement.