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Lennar (LEN) Ascends While Market Falls: Some Facts to Note

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Lennar (LEN - Free Report) closed the latest trading day at $157.03, indicating a +1.93% change from the previous session's end. This change outpaced the S&P 500's 0.6% loss on the day. Elsewhere, the Dow lost 0.86%, while the tech-heavy Nasdaq lost 1.08%.

Coming into today, shares of the homebuilder had gained 1.04% in the past month. In that same time, the Construction sector lost 0.86%, while the S&P 500 gained 3.15%.

Analysts and investors alike will be keeping a close eye on the performance of Lennar in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $3.20, reflecting an 8.84% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.54 billion, up 6.16% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.46 per share and a revenue of $35.78 billion, signifying shifts of +1.47% and +4.51%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Lennar. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Lennar possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Lennar has a Forward P/E ratio of 10.66 right now. This valuation marks a premium compared to its industry's average Forward P/E of 8.6.

It's also important to note that LEN currently trades at a PEG ratio of 1.44. 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 had an average PEG ratio of 0.77 as trading concluded yesterday.

The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 18, finds itself in the top 8% echelons of all 250+ industries.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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