Among the best stocks to buy and watch, Dow Jones chemicals giant Dow Inc. (DOW) and Birkenstock (BIRK), along with top homebuilders Lennar (LEN) and Toll Brothers (TOL), are stocks in or near buy zones on the stock market today. X Dow: A Dow Jones Stock To Watch Among the best stocks in the Dow… ...

Group 1: Market Overview - The week of February 12-16 saw discussions on stocks like Deere & Co, Coca-Cola, and Airbnb, highlighting broader market trends and potential investment opportunities [1] - Economic data, including U.S. CPI and Retail Sales, contributed to market volatility but indicated that the U.S. economy might avoid a recession, positively impacting investor sentiment [1] - The Russell 2000 index of smaller companies gained momentum, suggesting optimism among risk-on investors in the small-cap space [1] Group 2: Earnings Calendar and Key Stocks - The earnings calendar for February 19-23 is expected to be light, with a focus on Nvidia's anticipated earnings release, which could influence market direction [2] - Solid earnings from Nvidia and other stocks could help mitigate volatility in the market, especially if the remaining "Magnificent 7" stocks do not catalyze further upside [2] Group 3: Starbucks (SBUX) - Starbucks reported a 20% year-on-year profit increase but missed analyst estimates in its recent earnings results, leading to a decline in stock price post-announcement [3] - The stock currently trades at a P/E ratio of 22.9x, below the S&P 500's 27.2x, with an average price target of $107.15, indicating a potential upside of 15% [4] Group 4: Palo Alto Networks (PANW) - Palo Alto Networks is viewed as an intriguing investment opportunity, with its stock price rising ahead of its quarterly results announcement [5] - The company experienced a 66% growth in the previous quarter, but negative market reaction to disappointing forward revenue guidance is a concern [5] - Analysts forecast EPS growth of 24% to $1.30 and revenue growth of 19% to $1.97 billion, with a history of exceeding estimates by over 20% [5] Group 5: Lennar (LEN) - Lennar's stock price dropped following CPI data suggesting potential higher interest rates, but easing yields may allow for a rebound [6] - Warren Buffett's recent investment in Lennar, including a $21.4 million stake, indicates potential growth for the company amid a housing deficit of 3.1 million units in the U.S. [6] - Lennar trades at a P/E ratio of 10.9x and has increased its cash reserves by $1.7 billion to $6.3 billion, enhancing its investment potential [7]

Company Performance - Lennar's stock closed at $153.87, reflecting a +1.44% increase from the previous day, outperforming the S&P 500's gain of 0.96% [1] - Over the past month, Lennar's stock has risen by 0.78%, which is below the Construction sector's gain of 2.67% and the S&P 500's gain of 3.69% [1] - The upcoming earnings report is anticipated to show an EPS of $2.21, indicating a 4.25% growth year-over-year, with revenue expected to reach $7.44 billion, a 14.7% increase compared to the same quarter last year [1] Earnings Estimates - Full-year Zacks Consensus Estimates project earnings of $14.36 per share and revenue of $36.09 billion, representing year-over-year changes of +0.77% and +5.42%, respectively [2] - Recent changes to analyst estimates for Lennar indicate a favorable outlook on the company's business health and profitability [2] Valuation Metrics - Lennar has a Forward P/E ratio of 10.56, which is a premium compared to the industry average Forward P/E of 8.71 [3] - The company currently has a PEG ratio of 1.98, while the average PEG ratio for the Building Products - Home Builders industry is 0.81 [3] Industry Overview - The Building Products - Home Builders industry is part of the Construction sector and holds a Zacks Industry Rank of 34, placing it in the top 14% of over 250 industries [4] - The Zacks Industry Rank measures the strength of individual industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [4]

Lennar (LEN) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Shares of this homebuilder have returned +1.9% over the past month versus the Zacks S&P 500 composite's +5.6% change. The Zacks Building Products - Home Builders industry, to which Lennar belongs, has gained 1.5% over this period. Now the key question is: Where could the stock be headed in the near term?While media releases o ...

The most recent trading session ended with Lennar (LEN) standing at $152.50, reflecting a -0.98% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a loss of 0.32% for the day. On the other hand, the Dow registered a loss of 0.71%, and the technology-centric Nasdaq decreased by 0.2%.Heading into today, shares of the homebuilder had gained 5.29% over the past month, outpacing the Construction sector's gain of 2.55% and the S&P 500's gain of 4.59% in that tim ...

Real estate stocks, including REITs, open doorways to stable profits, tax benefits, and allows access to the housing sector. Housing alone comprises around 15% of U.S. GDP. Thus, investing in this sector is a good way to play broader economic strength in the U.S. and globally, depending not the company. While interest rates have increased, driving mortgage rates higher, there are reasons for investors to be bullish on housing stocks. For one, a new cohort of buyers, namely Millennial and Gen Z households wi ...

Key PointsThe homebuilder sector surged in previous months due to the Federal Reserve's optimism for interest rate cuts in 2024.Demand for new homes rises amid a shortage of inventory in the resale market, with Lennar projecting a 10% increase in home deliveries for 2024.The sector's ETF shows a bullish consolidation pattern near its 52-week high, hinting at a potential breakout.5 stocks we like better than PulteGroupThe homebuilder sector in the United States has been on fire over the previous year, mainly ...

A bill that could lead to some major tax cuts in the U.S. has been advanced. It’s named the “Tax Relief for American Families and Workers Act of 2024.” This legislation aims to enhance tax breaks for businesses and low-income families.If approved, it will increase the child tax credit. Further, it can restore business tax deductions for research and development, as well as plants and equipment. This would be effective throughout 2025.For investors, navigating these proposed tax cuts could lead to substantia ...

Homebuilding Operations - Homebuilding operations generated $33 billion in revenues, accounting for approximately 95% of consolidated revenues in fiscal 2023[7]. - New home deliveries increased to 73,087 in fiscal 2023, up from 66,399 in fiscal 2022, representing an increase of 10.2%[9]. - The average sales price of a Lennar home decreased to $446,000 in fiscal 2023 from $480,000 in fiscal 2022, a decline of 7.1%[9]. - The backlog dollar value, including unconsolidated entities, was $6.6 billion at November 30, 2023, down from $8.7 billion at November 30, 2022, a decrease of 24.1%[19]. - 76% of total homesites were controlled through options with land banks and joint ventures as of November 30, 2023, compared to 69% a year earlier[12]. - The company experienced a cancellation rate of 16% in 2023, slightly down from 17% in 2022[19]. - The company was actively building and marketing homes in 1,260 communities as of November 30, 2023, an increase from 1,208 communities in the previous year[14]. - The company aims to maintain strong operating margins by deferring home sale price commitments until construction costs are finalized[8]. - The company is focused on a land light operating model, increasing the percentage of land controlled through options or agreements[8]. - The company has equity investments in 48 active homebuilding and land unconsolidated entities as of November 30, 2023[19]. Financial Services - In fiscal year 2023, the company originated approximately 47,000 residential mortgage loans totaling $17.4 billion, an increase from 37,700 loans totaling $14.4 billion in fiscal year 2022, representing a 20.8% increase in loan volume[20]. - The company locked interest rates on approximately 46,600 residential mortgage loans totaling $17.2 billion in fiscal year 2023, compared to 41,100 loans totaling $15.7 billion in fiscal year 2022, indicating a 9.6% increase in loan volume[20]. - As of November 30, 2023, the company had a total maximum borrowing capacity of $2.5 billion under its financial services warehouse facilities, including an uncommitted amount of $750 million[20]. - The company reported a net loss of $50.65 million in the Multifamily segment for 2023, compared to a profit of $69.49 million in 2022[271]. - The Financial Services segment originated commercial loans totaling $466.04 million in 2023, down from $740.35 million in 2022, indicating a decline of about 37%[285]. Revenue and Earnings - Total revenues for the year ended November 30, 2023, reached $34.23 billion, an increase of 1.67% compared to $33.67 billion in 2022[207]. - Net earnings attributable to Lennar for 2023 were $3.94 billion, down 14.7% from $4.61 billion in 2022[207]. - Basic earnings per share for 2023 were $13.73, a decrease from $15.74 in 2022[207]. - Total comprehensive income attributable to Lennar for 2023 was $3.94 billion, down from $4.62 billion in 2022[207]. - The company reported a significant increase in depreciation and amortization expenses to $110,164, up from $87,075 in 2022[211]. Assets and Liabilities - Total assets as of November 30, 2023, amounted to $39.23 billion, an increase from $37.98 billion in 2022[203]. - Total liabilities decreased to $12.53 billion in 2023 from $13.74 billion in 2022, reflecting a reduction of approximately 8.8%[207]. - The company’s total equity as of November 30, 2023, was $26.70 billion, an increase from $24.24 billion in 2022[209]. - The company reported $2.54 billion in liabilities related to consolidated inventory not owned, up from $1.97 billion in 2022, an increase of 29%[205]. - The company has $1.9 billion related to consolidated variable interest entities (VIEs) as of November 30, 2023[203]. Cash Flow and Financing - Cash and cash equivalents increased to $6.27 billion in 2023 from $4.62 billion in 2022[203]. - Net cash provided by operating activities increased to $5,179,738, up 58.5% from $3,265,668 in 2022[211]. - Total cash used in financing activities was $3,247,589, significantly higher than $1,277,279 in 2022[212]. - The company reported a total of $2,816,482 in homebuilding senior notes and other debts payable, up from $4,047,294 in the previous year[329]. - The company repurchased $196.1 million of 4.500% senior notes due April 2024 and $100.0 million of 4.75% senior notes due November 2027 during the year[306]. Investments and Impairments - The company has investments in unconsolidated entities totaling $1.1 billion as of November 30, 2023, down from $1.2 billion in 2022[292]. - The company estimated an other-than-temporary impairment of $36.8 million for an investment in an unconsolidated entity in 2023[233]. - The company reported unrealized losses from technology investments of $50.2 million in 2023, significantly reduced from $655.1 million in 2022[291]. - The carrying amount of the Company's investment in Doma Holdings, Inc. was zero as of November 30, 2023, due to allocated losses[292]. - The company wrote off $65.0 million related to a non-public technology investment during the year ended November 30, 2023[342]. Community and Sustainability - The company focuses on environmentally sustainable products, incorporating features like Low-VOC paint, WaterSense® faucets, Low-E windows, and Energy Star® appliances in new homes[37]. - The company is actively involved in community solar microgrid development in partnership with Sunnova[37]. - The company sold its SunStreet solar operations to Sunnova in 2021, believing that Sunnova can better maximize the potential of these operations[37]. Workforce and Talent Management - The company employed 12,284 individuals as of November 30, 2023, an increase from 12,012 individuals in the previous year, with 9,622 in Homebuilding operations[41]. - The company is focused on attracting and retaining talent, offering a comprehensive benefits package to its associates[39]. - The company does not have collective bargaining agreements with its associates, but it maintains healthy relations with its workforce[41]. Tax and Regulatory Matters - The provision for income taxes for 2023 includes current federal taxes of $1,037,229,000 and state taxes of $271,752,000, totaling $1,308,981,000[316]. - The effective tax rate for 2023 is reported at 23.96%, an increase from 22.84% in 2022[317]. - The company has federal tax effected NOL carryforwards that may offset future taxable income, beginning to expire in 2029[323]. - The company is subject to various federal, state, and local laws that regulate consumer debt collection activities, which could materially affect its operations if not complied with[36].

Core Viewpoint - Lennar has shown a strong stock performance recently, outperforming both the S&P 500 and its industry peers, raising questions about its future stock trajectory [1] Earnings Estimate Revisions - The consensus earnings estimate for Lennar is $2.21 per share for the current quarter, reflecting a year-over-year increase of +4.3% [3] - The fiscal year earnings estimate stands at $14.36, indicating a +0.8% change year-over-year, while the next fiscal year's estimate is $15.92, showing a +10.9% increase [3] - The Zacks Rank for Lennar is 3 (Hold), based on recent changes in earnings estimates and other related factors [3] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $7.45 billion, representing a year-over-year increase of +14.7% [5] - For the current fiscal year, the revenue estimate is $36.09 billion (+5.4%), and for the next fiscal year, it is $38.23 billion (+5.9%) [5] Last Reported Results and Surprise History - In the last reported quarter, Lennar achieved revenues of $10.97 billion, a +7.8% increase year-over-year, and an EPS of $5.17 compared to $5.02 a year ago [6] - The company exceeded the Zacks Consensus Estimate for revenues by +6.09% and for EPS by +11.42% [6] - Lennar has consistently beaten consensus EPS and revenue estimates in the past four quarters [7] Valuation - Lennar's valuation metrics, including price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), are essential for assessing its stock price relative to its intrinsic value and growth prospects [8] - The Zacks Value Style Score for Lennar is graded B, indicating it is trading at a discount compared to its peers [9]