Lennar (LEN) closed the most recent trading day at $84.62, moving +1.22% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.3%. Elsewhere, the Dow lost 0.57%, while the tech-heavy Nasdaq added 0.09%.
Heading into today, shares of the homebuilder had gained 3.94% over the past month, lagging the Construction sector's gain of 6.82% and the S&P 500's gain of 4.43% in that time.
Investors will be hoping for strength from LEN as it approaches its next earnings release. In that report, analysts expect LEN to post earnings of $1.62 per share. This would mark year-over-year growth of 27.56%. Meanwhile, our latest consensus estimate is calling for revenue of $5.03 billion, up 11.73% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.50 per share and revenue of $24.91 billion. These totals would mark changes of +8.28% and +10.79%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for LEN. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. LEN is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note LEN's current valuation metrics, including its Forward P/E ratio of 9.84. For comparison, its industry has an average Forward P/E of 9.51, which means LEN is trading at a premium to the group.
Investors should also note that LEN has a PEG ratio of 1.13 right now. 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 industry had an average PEG ratio of 0.68 as of yesterday's close.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 25, putting it in the top 10% 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.
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