Lennar (LEN) Stock Falls Amid Market Uptick: What Investors Need to Know

In the latest trading session, Lennar (LEN) closed at $110.73, marking a -4.87% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.81%. Meanwhile, the Dow experienced a rise of 0.63%, and the technology-dominated Nasdaq saw an increase of 1.26%.

The homebuilder's shares have seen an increase of 5.75% over the last month, not keeping up with the Construction sector's gain of 8.81% and outstripping the S&P 500's loss of 0.25%.

Market participants will be closely following the financial results of Lennar in its upcoming release. The company's earnings per share (EPS) are projected to be $0.96, reflecting a 55.14% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.83 billion, down 10.47% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.44 per share and a revenue of $33 billion, indicating changes of -20.1% and -3.48%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Lennar. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 5.77% lower. Lennar presently features a Zacks Rank of #5 (Strong Sell).

Investors should also note Lennar's current valuation metrics, including its Forward P/E ratio of 18.07. This represents a premium compared to its industry average Forward P/E of 15.01.

It is also worth noting that LEN currently has a PEG ratio of 1.69. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Building Products - Home Builders industry currently had an average PEG ratio of 2.24 as of yesterday's close.

The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 241, placing it within the bottom 2% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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