Lennar (LEN) Increases Yet Falls Behind Market: What Investors Need to Know

Company Performance - Lennar (LEN) closed at $159.37, with a daily increase of +1.05%, which was lower than the S&P 500's gain of 1.19% [1] - The stock has decreased by 2.1% over the past month, underperforming the Construction sector's loss of 1.84% and the S&P 500's gain of 3.35% [1] - The upcoming earnings report is scheduled for June 17, 2024, with expected EPS of $3.20, reflecting an 8.84% increase year-over-year, and revenue forecasted at $8.54 billion, up 6.16% from the prior year [1] Earnings Estimates - Full-year Zacks Consensus Estimates predict earnings of $14.46 per share and revenue of $35.78 billion, indicating year-over-year changes of +1.47% and +4.51%, respectively [2] - Recent revisions to analyst forecasts are crucial as they indicate changing business trends, with upward revisions suggesting positive sentiment towards the company's operations [2] Valuation Metrics - Lennar has a Zacks Rank of 3 (Hold), with no changes in the Zacks Consensus EPS estimate over the past month [3] - The company is trading at a Forward P/E ratio of 10.91, which is a premium compared to the industry average of 8.51 [3] - The PEG ratio for Lennar is currently 1.47, compared to the Building Products - Home Builders industry's average PEG ratio of 0.83 [3] Industry Overview - The Building Products - Home Builders industry is part of the Construction sector and holds a Zacks Industry Rank of 26, placing it in the top 11% of over 250 industries [4] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [4]