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Lennar (LEN) Stock Declines While Market Improves: Some Information for Investors
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Lennar (LEN - Free Report) closed at $87.09 in the latest trading session, marking a -1.46% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.19%. Elsewhere, the Dow saw an upswing of 0.19%, while the tech-heavy Nasdaq appreciated by 0.1%.
Prior to today's trading, shares of the homebuilder had lost 0.66% lagged the Construction sector's gain of 6.73% and the S&P 500's gain of 9.13%.
The investment community will be paying close attention to the earnings performance of Lennar in its upcoming release. The company is predicted to post an EPS of $1.24, indicating a 34.74% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $8.09 billion, indicating a 3.46% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.87 per share and a revenue of $32.72 billion, representing changes of -27.17% and -4.29%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Lennar. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.94% lower within the past month. Lennar is currently a Zacks Rank #3 (Hold).
In the context of valuation, Lennar is at present trading with a Forward P/E ratio of 15.06. Its industry sports an average Forward P/E of 14.15, so one might conclude that Lennar is trading at a premium comparatively.
It's also important to note that LEN currently trades at a PEG ratio of 1.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Home Builders was holding an average PEG ratio of 1.5 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 227, which puts it in the bottom 7% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Lennar (LEN) Stock Declines While Market Improves: Some Information for Investors
Lennar (LEN - Free Report) closed at $87.09 in the latest trading session, marking a -1.46% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.19%. Elsewhere, the Dow saw an upswing of 0.19%, while the tech-heavy Nasdaq appreciated by 0.1%.
Prior to today's trading, shares of the homebuilder had lost 0.66% lagged the Construction sector's gain of 6.73% and the S&P 500's gain of 9.13%.
The investment community will be paying close attention to the earnings performance of Lennar in its upcoming release. The company is predicted to post an EPS of $1.24, indicating a 34.74% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $8.09 billion, indicating a 3.46% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.87 per share and a revenue of $32.72 billion, representing changes of -27.17% and -4.29%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Lennar. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.94% lower within the past month. Lennar is currently a Zacks Rank #3 (Hold).
In the context of valuation, Lennar is at present trading with a Forward P/E ratio of 15.06. Its industry sports an average Forward P/E of 14.15, so one might conclude that Lennar is trading at a premium comparatively.
It's also important to note that LEN currently trades at a PEG ratio of 1.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Home Builders was holding an average PEG ratio of 1.5 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 227, which puts it in the bottom 7% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 follow all of these stock-moving metrics, and many more, on Zacks.com.