Lennar (LEN – Free Report) closed the most recent trading day at $86.46, moving +1.57% from the previous trading session. This change outpaced the S&P 500’s 0.59% gain on the day. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq added 0.02%.
Coming into today, shares of the homebuilder had gained 8.3% in the past month. In that same time, the Construction sector gained 13.51%, while the S&P 500 gained 6.89%.
Wall Street will be looking for positivity from Lennar as it approaches its next earnings report date. On that day, Lennar is projected to report earnings of $4.94 per share, which would represent year-over-year growth of 13.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.28 billion, up 21.89% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $17.45 per share and revenue of $33.75 billion, which would represent changes of +22.28% and +24.41%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Lennar. These recent revisions tend to reflect the evolving nature of short-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Lennar is currently a Zacks Rank #4 (Sell).
Investors should also note Lennar’s current valuation metrics, including its Forward P/E ratio of 4.88. Its industry sports an average Forward P/E of 3.88, so we one might conclude that Lennar is trading at a premium comparatively.
Meanwhile, LEN’s PEG ratio is currently 4.78. 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 currently had an average PEG ratio of 0.91 as of yesterday’s close.
The Building Products – Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 237, putting it in the bottom 6% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.