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Here's Why Lennar (LEN) Fell More Than Broader Market
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Lennar (LEN - Free Report) closed the most recent trading day at $88.71, moving -3.91% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.04%. Elsewhere, the Dow saw a downswing of 0.57%, while the tech-heavy Nasdaq appreciated by 0.04%.
Coming into today, shares of the homebuilder had gained 6.31% in the past month. In that same time, the Construction sector gained 11.71%, while the S&P 500 gained 12.24%.
Analysts and investors alike will be keeping a close eye on the performance of Lennar in its upcoming earnings disclosure. On that day, Lennar is projected to report earnings of $1.24 per share, which would represent a year-over-year decline of 34.74%. Simultaneously, our latest consensus estimate expects the revenue to be $8.09 billion, showing a 3.46% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.91 per share and revenue of $32.83 billion, which would represent changes of -26.67% and -3.98%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Lennar. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.26% lower. Lennar presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Lennar is at present trading with a Forward P/E ratio of 15.63. For comparison, its industry has an average Forward P/E of 15.12, which means Lennar is trading at a premium to the group.
Meanwhile, LEN's PEG ratio is currently 2.03. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 2.21.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 217, placing it within the bottom 12% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Here's Why Lennar (LEN) Fell More Than Broader Market
Lennar (LEN - Free Report) closed the most recent trading day at $88.71, moving -3.91% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.04%. Elsewhere, the Dow saw a downswing of 0.57%, while the tech-heavy Nasdaq appreciated by 0.04%.
Coming into today, shares of the homebuilder had gained 6.31% in the past month. In that same time, the Construction sector gained 11.71%, while the S&P 500 gained 12.24%.
Analysts and investors alike will be keeping a close eye on the performance of Lennar in its upcoming earnings disclosure. On that day, Lennar is projected to report earnings of $1.24 per share, which would represent a year-over-year decline of 34.74%. Simultaneously, our latest consensus estimate expects the revenue to be $8.09 billion, showing a 3.46% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.91 per share and revenue of $32.83 billion, which would represent changes of -26.67% and -3.98%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Lennar. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.26% lower. Lennar presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Lennar is at present trading with a Forward P/E ratio of 15.63. For comparison, its industry has an average Forward P/E of 15.12, which means Lennar is trading at a premium to the group.
Meanwhile, LEN's PEG ratio is currently 2.03. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Building Products - Home Builders industry was having an average PEG ratio of 2.21.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 217, placing it within the bottom 12% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.