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LEN

Lennar to release Q4 results January 10

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What's Happening

U.S. homebuilder Lennar ( LEN ) is scheduled to report its Q4 numbers on January 10. The company will release its quarterly numbers before the market open, and the consensus calls for earnings of $1.50 per share. During the same period last year the company earned $1.34 per share, and the stock is up 25.7% since the end of June.

Technical Analysis

LEN was recently trading at $67.02, just $0.61 from its 12-month high and $24.95 above its 12-month low. Technical indicators for LEN are bullish with a strong upward trend. The stock has recent support above $64.00 and recent resistance below $67.60. Of the 17 analysts who cover the stock, 10 rate it a "strong buy", one rates it a "buy", and six rate it a "hold". LEN gets a score of 89 from InvestorsObserver's Stock Score Report.

Analyst's Thoughts

Despite a few interest rate increases over the last year, the housing market remains very strong. Low inventories across the nation have kept home prices rising, and all the major homebuilders have enjoyed strong gains over the last year. Lennar has posted a string of better than expected quarterly reports, and the market expects that trend to continue when it releases its fourth-quarter results. The street has a whisper number of $1.54 to the quarter, four pennies above the consensus. LEN has a P/E of 19.7, and analysts have an average price target of $62.11 on the stock.

Stock Only Trade

Bullish Trade

If you want a bullish hedged trade on the stock, consider a February 55/60 bull-put credit spread for a 25-cent credit. That's a potential 5.3% return (45.7% annualized*) and the stock would have to fall 10.1% to cause a problem.

Bearish Trade

If you want to take a bearish stance on the stock at this time, consider a February 72.50/75 bear-call credit spread for a $0.20 credit. That's a potential 8.7% return (75.6% annualized*) and the stock would have to rise 8.5% to cause a problem.

Covered Call Trade

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Originally published on InvestorsObserver.com


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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