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Has Lennar (LEN) Outpaced Other Construction Stocks This Year?

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For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Lennar (LEN - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of LEN and the rest of the Construction group's stocks.

Lennar is one of 101 individual stocks in the Construction sector. Collectively, these companies sit at #3 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. LEN is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for LEN's full-year earnings has moved 1.30% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, LEN has moved about 51.95% on a year-to-date basis. In comparison, Construction companies have returned an average of 32.60%. As we can see, Lennar is performing better than its sector in the calendar year.

Looking more specifically, LEN belongs to the Building Products - Home Builders industry, which includes 19 individual stocks and currently sits at #19 in the Zacks Industry Rank. On average, stocks in this group have gained 50.08% this year, meaning that LEN is performing better in terms of year-to-date returns.

Going forward, investors interested in Construction stocks should continue to pay close attention to LEN as it looks to continue its solid performance.


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