Lennar Corporation (LEN) closed at $174 in the latest trading session, marking a slight decline of 0.84% from the previous day. This move lagged behind the overall market performance, with the S&P 500 losing 0.2%, the Dow dropping 0.15%, and the Nasdaq falling 0.34%.
While Lennar’s shares have seen a modest increase of 1.72% over the past month, they haven’t kept pace with the Construction sector’s gain of 2.3% or the S&P 500’s gain of 1.93%. This suggests that investors are still evaluating the company’s future prospects.
The investment community will be paying close attention to Lennar’s upcoming earnings performance, as it will provide insights into the company’s financial health and future growth potential. Analysts are expecting Lennar to post earnings of $3.65 per share in its upcoming report, representing a year-over-year decline of 6.65%. However, the consensus estimate for revenue is $9.29 billion, indicating a 6.4% increase compared to the same quarter of the previous year.
Looking ahead to the full year, the Zacks Consensus Estimates project earnings of $14.16 per share and revenue of $35.74 billion, reflecting changes of -0.63% and +4.41%, respectively, from the preceding year.
It’s worth noting that recent changes to analyst estimates for Lennar can offer valuable insights into the evolving nature of short-term business trends. Positive revisions to estimates generally signify analyst optimism regarding the company’s business and profitability. The Zacks Rank system, which incorporates these estimate changes, provides an actionable rating system that has a noteworthy track record of outperforming. The system ranges from #1 (Strong Buy) to #5 (Strong Sell), and stocks rated #1 have produced an average annual return of +25% since 1988.
Over the past month, the Zacks Consensus EPS estimate for Lennar has moved 0.55% lower. As a result, Lennar currently possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Lennar is currently being traded at a Forward P/E ratio of 12.39. This indicates a premium compared to the average Forward P/E of 9.11 for its industry. Additionally, Lennar has a PEG ratio of 1.59, which takes into account the company’s expected earnings growth rate. The Building Products – Home Builders industry, where Lennar operates, had an average PEG ratio of 0.92 at yesterday’s closing price.
The Building Products – Home Builders industry is part of the Construction sector. This industry currently holds a Zacks Industry Rank of 20, placing it in the top 8% of all 250+ industries. The Zacks Industry Rank assesses the strength of industry groups by calculating the average Zacks Rank of the individual stocks within them. Research suggests that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
