Lennar (LEN) closed at $59.73 in the latest trading session, marking a +0.15% move from the prior day. This change outpaced the S&P 500's 0.38% loss on the day. Elsewhere, the Dow lost 0.4%, while the tech-heavy Nasdaq lost 0.51%.
Prior to today's trading, shares of the homebuilder had lost 3.2% over the past month. This has lagged the Construction sector's gain of 2.3% and the S&P 500's gain of 4.7% in that time.
Wall Street will be looking for positivity from LEN as it approaches its next earnings report date. On that day, LEN is projected to report earnings of $1.90 per share, which would represent a year-over-year decline of 3.06%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.70 billion, up 3.67% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.49 per share and revenue of $21.83 billion, which would represent changes of -13.54% and +6.1%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for LEN. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. LEN is currently a Zacks Rank #2 (Buy).
Investors should also note LEN's current valuation metrics, including its Forward P/E ratio of 10.85. For comparison, its industry has an average Forward P/E of 10.73, which means LEN is trading at a premium to the group.
It is also worth noting that LEN currently has a PEG ratio of 1.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 1.17 based on yesterday's closing prices.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 31, putting it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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