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Lennar (LEN) Stock Sinks As Market Gains: What You Should Know
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Lennar (LEN - Free Report) ended the recent trading session at $86.09, demonstrating a -5.42% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.37%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, added 0.83%.
Shares of the homebuilder witnessed a gain of 22.27% over the previous month, beating the performance of the Construction sector with its gain of 1.5%, and the S&P 500's loss of 2.29%.
The investment community will be closely monitoring the performance of Lennar in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.47, marking a 27.59% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $8.67 billion, reflecting a 7.4% fall from the equivalent quarter last year.
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.
It's also important for investors to be aware of any recent modifications to 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.95% lower. Lennar is currently sporting a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Lennar has a Forward P/E ratio of 18.87 right now. This expresses a premium compared to the average Forward P/E of 14.3 of its industry.
It is also worth noting that LEN currently has a PEG ratio of 3.46. 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. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 2.4 based on yesterday's closing prices.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 235, placing it within the bottom 5% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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Lennar (LEN) Stock Sinks As Market Gains: What You Should Know
Lennar (LEN - Free Report) ended the recent trading session at $86.09, demonstrating a -5.42% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.37%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, added 0.83%.
Shares of the homebuilder witnessed a gain of 22.27% over the previous month, beating the performance of the Construction sector with its gain of 1.5%, and the S&P 500's loss of 2.29%.
The investment community will be closely monitoring the performance of Lennar in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.47, marking a 27.59% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $8.67 billion, reflecting a 7.4% fall from the equivalent quarter last year.
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.
It's also important for investors to be aware of any recent modifications to 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.95% lower. Lennar is currently sporting a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Lennar has a Forward P/E ratio of 18.87 right now. This expresses a premium compared to the average Forward P/E of 14.3 of its industry.
It is also worth noting that LEN currently has a PEG ratio of 3.46. 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. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 2.4 based on yesterday's closing prices.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 235, placing it within the bottom 5% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.