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Here's Why Lennar (LEN) Gained But Lagged the Market Today
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The most recent trading session ended with Lennar (LEN - Free Report) standing at $154.29, reflecting a +0.98% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 1.02%. Elsewhere, the Dow gained 0.4%, while the tech-heavy Nasdaq added 2.03%.
Prior to today's trading, shares of the homebuilder had lost 11.16% over the past month. This has lagged the Construction sector's loss of 6.08% and the S&P 500's loss of 3.15% in that time.
Market participants will be closely following the financial results of Lennar in its upcoming release. On that day, Lennar is projected to report earnings of $3.20 per share, which would represent year-over-year growth of 8.84%. Simultaneously, our latest consensus estimate expects the revenue to be $8.54 billion, showing a 6.16% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.46 per share and a revenue of $35.78 billion, indicating changes of +1.47% and +4.51%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Lennar. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.51% higher. Right now, Lennar possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Lennar is currently being traded at a Forward P/E ratio of 10.57. For comparison, its industry has an average Forward P/E of 9.07, which means Lennar is trading at a premium to the group.
It is also worth noting that LEN currently has a PEG ratio of 1.43. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Building Products - Home Builders industry held an average PEG ratio of 0.85.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 65, placing it within the top 26% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
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Here's Why Lennar (LEN) Gained But Lagged the Market Today
The most recent trading session ended with Lennar (LEN - Free Report) standing at $154.29, reflecting a +0.98% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 1.02%. Elsewhere, the Dow gained 0.4%, while the tech-heavy Nasdaq added 2.03%.
Prior to today's trading, shares of the homebuilder had lost 11.16% over the past month. This has lagged the Construction sector's loss of 6.08% and the S&P 500's loss of 3.15% in that time.
Market participants will be closely following the financial results of Lennar in its upcoming release. On that day, Lennar is projected to report earnings of $3.20 per share, which would represent year-over-year growth of 8.84%. Simultaneously, our latest consensus estimate expects the revenue to be $8.54 billion, showing a 6.16% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.46 per share and a revenue of $35.78 billion, indicating changes of +1.47% and +4.51%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Lennar. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.51% higher. Right now, Lennar possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Lennar is currently being traded at a Forward P/E ratio of 10.57. For comparison, its industry has an average Forward P/E of 9.07, which means Lennar is trading at a premium to the group.
It is also worth noting that LEN currently has a PEG ratio of 1.43. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Building Products - Home Builders industry held an average PEG ratio of 0.85.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 65, placing it within the top 26% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.