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Lennar (LEN) Stock Drops Despite Market Gains: Important Facts to Note
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In the latest close session, Lennar (LEN - Free Report) was down 1.34% at $83.45. This change lagged the S&P 500's 0.28% gain on the day. Meanwhile, the Dow experienced a rise of 0.19%, and the technology-dominated Nasdaq saw an increase of 0.27%.
Shares of the homebuilder witnessed a gain of 1.89% over the previous month, beating the performance of the Construction sector with its loss of 4.67%, and the S&P 500's loss of 0.2%.
The upcoming earnings release of Lennar will be of great interest to investors. On that day, Lennar is projected to report earnings of $1.47 per share, which would represent a year-over-year decline of 27.59%. Simultaneously, our latest consensus estimate expects the revenue to be $8.67 billion, showing a 7.4% drop compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.82 per share and revenue of $31.27 billion. These totals would mark changes of -40.2% and -8.52%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Lennar. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.24% lower. Lennar currently has a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, Lennar is currently exchanging hands at a Forward P/E ratio of 17.54. This represents a premium compared to its industry average Forward P/E of 13.01.
We can also see that LEN currently has a PEG ratio of 3.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Home Builders was holding an average PEG ratio of 2.36 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 233, which puts it in the bottom 6% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
View the Zacks #1 Rank List
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Lennar (LEN) Stock Drops Despite Market Gains: Important Facts to Note
In the latest close session, Lennar (LEN - Free Report) was down 1.34% at $83.45. This change lagged the S&P 500's 0.28% gain on the day. Meanwhile, the Dow experienced a rise of 0.19%, and the technology-dominated Nasdaq saw an increase of 0.27%.
Shares of the homebuilder witnessed a gain of 1.89% over the previous month, beating the performance of the Construction sector with its loss of 4.67%, and the S&P 500's loss of 0.2%.
The upcoming earnings release of Lennar will be of great interest to investors. On that day, Lennar is projected to report earnings of $1.47 per share, which would represent a year-over-year decline of 27.59%. Simultaneously, our latest consensus estimate expects the revenue to be $8.67 billion, showing a 7.4% drop compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.82 per share and revenue of $31.27 billion. These totals would mark changes of -40.2% and -8.52%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Lennar. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.24% lower. Lennar currently has a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, Lennar is currently exchanging hands at a Forward P/E ratio of 17.54. This represents a premium compared to its industry average Forward P/E of 13.01.
We can also see that LEN currently has a PEG ratio of 3.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Home Builders was holding an average PEG ratio of 2.36 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 233, which puts it in the bottom 6% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.