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Are Investors Undervaluing Lennar (LEN) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Lennar (LEN - Free Report) . LEN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.71, while its industry has an average P/E of 11.25. Over the past 52 weeks, LEN's Forward P/E has been as high as 11.28 and as low as 7.49, with a median of 9.25.
Investors should also note that LEN holds a PEG ratio of 0.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LEN's PEG compares to its industry's average PEG of 1.15. Within the past year, LEN's PEG has been as high as 1.21 and as low as 0.54, with a median of 1.02.
Investors should also recognize that LEN has a P/B ratio of 1.09. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. LEN's current P/B looks attractive when compared to its industry's average P/B of 1.38. Over the past 12 months, LEN's P/B has been as high as 1.40 and as low as 0.97, with a median of 1.12.
Finally, investors will want to recognize that LEN has a P/CF ratio of 9.07. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. LEN's P/CF compares to its industry's average P/CF of 9.69. Over the past 52 weeks, LEN's P/CF has been as high as 11.67 and as low as 7.43, with a median of 8.97.
These are just a handful of the figures considered in Lennar's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that LEN is an impressive value stock right now.
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Are Investors Undervaluing Lennar (LEN) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Lennar (LEN - Free Report) . LEN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.71, while its industry has an average P/E of 11.25. Over the past 52 weeks, LEN's Forward P/E has been as high as 11.28 and as low as 7.49, with a median of 9.25.
Investors should also note that LEN holds a PEG ratio of 0.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LEN's PEG compares to its industry's average PEG of 1.15. Within the past year, LEN's PEG has been as high as 1.21 and as low as 0.54, with a median of 1.02.
Investors should also recognize that LEN has a P/B ratio of 1.09. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. LEN's current P/B looks attractive when compared to its industry's average P/B of 1.38. Over the past 12 months, LEN's P/B has been as high as 1.40 and as low as 0.97, with a median of 1.12.
Finally, investors will want to recognize that LEN has a P/CF ratio of 9.07. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. LEN's P/CF compares to its industry's average P/CF of 9.69. Over the past 52 weeks, LEN's P/CF has been as high as 11.67 and as low as 7.43, with a median of 8.97.
These are just a handful of the figures considered in Lennar's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that LEN is an impressive value stock right now.