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Lennar (LEN) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, Lennar (LEN) closed at $107.86, marking a -0.09% move from the previous day.

This story originally appeared on Zacks

In the latest trading session, Lennar (LEN) closed at $107.86, marking a -0.09% move from the previous day. This change lagged the S&P 500's 0.43% gain on the day.

- Zacks

Heading into today, shares of the homebuilder had gained 2.67% over the past month, lagging the Construction sector's gain of 5.4% and outpacing the S&P 500's gain of 2.56% 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 $3.24 per share, which would represent year-over-year growth of 52.83%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.27 billion, up 23.83% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.54 per share and revenue of $28.54 billion. These totals would mark changes of +72.48% and +26.91%, respectively, from last year.

Investors should also note any 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. LEN is currently a Zacks Rank #3 (Hold).

In terms of valuation, LEN is currently trading at a Forward P/E ratio of 7.98. This represents a premium compared to its industry's average Forward P/E of 6.98.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% 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.

To follow LEN in the coming trading sessions, be sure to utilize Zacks.com.

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