In the latest trading session, Lennar (LEN) closed at $86.20, marking a -2.54% move from the previous day. This change lagged the S&P 500's daily gain of 0.81%. Elsewhere, the Dow saw an upswing of 0.73%, while the tech-heavy Nasdaq appreciated by 1.03%.
Shares of the homebuilder have depreciated by 4.75% over the course of the past month, underperforming the Construction sector's gain of 11.33%, and the S&P 500's gain of 9.47%.
Analysts and investors alike will be keeping a close eye on the performance of Lennar in its upcoming earnings disclosure. The company is expected to report EPS of $1.24, down 34.74% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $8.09 billion, indicating a 3.46% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $5.91 per share and a revenue of $32.83 billion, demonstrating changes of -26.67% and -3.98%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Lennar. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 2.34% lower. Currently, Lennar is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Lennar is currently exchanging hands at a Forward P/E ratio of 14.28. This signifies a premium in comparison to the average Forward P/E of 13.52 for its industry.
One should further note that LEN currently holds a PEG ratio of 1.85. 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. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 1.66 based on yesterday's closing prices.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 215, finds itself in the bottom 12% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Lennar Corporation (LEN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).