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Lennar (LEN) Stock Moves -0.78%: What You Should Know

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Lennar (LEN - Free Report) closed the most recent trading day at $103.79, moving -0.78% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.26%. At the same time, the Dow lost 0.86%, and the tech-heavy Nasdaq lost 1.54%.

The homebuilder's stock has dropped by 7.53% in the past month, exceeding the Construction sector's loss of 7.65% and lagging the S&P 500's loss of 3.67%.

Analysts and investors alike will be keeping a close eye on the performance of Lennar in its upcoming earnings disclosure. The company's upcoming EPS is projected at $4.63, signifying a 7.77% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $10.34 billion, up 1.59% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.59 per share and a revenue of $33.69 billion, representing changes of -22.56% and +0.07%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Lennar. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 5.82% upward. Lennar currently has a Zacks Rank of #2 (Buy).

In terms of valuation, Lennar is currently trading at a Forward P/E ratio of 7.7. This represents a premium compared to its industry's average Forward P/E of 7.12.

We can additionally observe that LEN currently boasts a PEG ratio of 1.28. 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 industry currently had an average PEG ratio of 0.66 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 68, this industry ranks in the top 27% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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.


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