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Lennar (LEN) Exceeds Market Returns: Some Facts to Consider

Lennar (LEN) Exceeds Market Returns: Some Facts to Consider

FinvizFinviz2026/02/14 00:18
By:Finviz

In the latest close session, Lennar (LEN) was up +1.2% at $122.28. This change outpaced the S&P 500's 0.05% gain on the day. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq lost 0.22%.

The stock of homebuilder has fallen by 1.16% in the past month, lagging the Construction sector's gain of 6.88% and overreaching the S&P 500's loss of 1.99%.

Analysts and investors alike will be keeping a close eye on the performance of Lennar in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.96, reflecting a 55.14% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue 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. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.41% lower. Right now, Lennar possesses a Zacks Rank of #5 (Strong Sell).

From a valuation perspective, Lennar is currently exchanging hands at a Forward P/E ratio of 18.76. This signifies a premium in comparison to the average Forward P/E of 15.01 for its industry.

It is also worth noting that LEN currently has a PEG ratio of 1.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Building Products - Home Builders industry had an average PEG ratio of 2.26.

The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 241, positioning it in the bottom 2% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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