Heading into today, shares of the homebuilder had gained 3.73% over the past month, outpacing the Construction sector’s gain of 0.29% and the S&P 500’s gain of 3.28% in that time.
Investors will be hoping for strength from LEN as it approaches its next earnings release. In that report, analysts expect LEN to post earnings of $3.24 per share. This would mark 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.
LEN’s full-year Zacks Consensus Estimates are calling for earnings of $13.54 per share and revenue of $28.54 billion. These results would represent year-over-year changes of +72.48% and +26.91%, respectively.
It is also important to note the recent changes to analyst estimates for LEN. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. LEN is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, LEN is currently trading at a Forward P/E ratio of 7.43. This represents a premium compared to its industry’s average Forward P/E of 6.88.
The Building Products – Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.