In the latest trading session, Lennar (LEN - Free Report) closed at $55.20, marking a +0.56% move from the previous day. This move outpaced the S&P 500's daily loss of 0.84%. At the same time, the Dow lost 0.53%, and the tech-heavy Nasdaq lost 1.47%.
Prior to today's trading, shares of the homebuilder had gained 7.54% over the past month. This has lagged the Construction sector's gain of 7.76% and outpaced the S&P 500's gain of 5.2% in that time.
LEN will be looking to display strength as it nears its next earnings release, which is expected to be October 2, 2019. The company is expected to report EPS of $1.32, down 5.71% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.52 billion, down 2.64% from the year-ago period.
LEN's full-year Zacks Consensus Estimates are calling for earnings of $5.32 per share and revenue of $21.63 billion. These results would represent year-over-year changes of -16.22% and +5.16%, respectively.
Any recent changes to analyst estimates for LEN should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. LEN currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that LEN has a Forward P/E ratio of 10.32 right now. Its industry sports an average Forward P/E of 10.4, so we one might conclude that LEN is trading at a discount comparatively.
Investors should also note that LEN has a PEG ratio of 1.2 right now. 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 1.2 at yesterday's closing price.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 23, putting it in the top 9% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.