Lennar reports earnings January 9

What's Happening With LEN View more about LEN >

Homebuilder Lennar (LEN) is scheduled to release its fourth-quarter numbers January 9. The company reports before the market open with the consensus calling for earnings of $1.93 per share. During the same period last year the company earned $1.29 per share, and the stock has lost 22% over the last six months.

Technical Analysis

LEN was recently trading at $41.29 down $30.88 from its 12-month high and $4 above its 12-month low. InvestorsObserver’s Stock Score Report gives LEN a 27 long-term technical score and a 27 short-term technical score. The stock has recent support above $37.25 and recent resistance below $42.5. Of the 13 analysts who cover the stock 12 rate it Strong Buy, 0 rate it Buy, 1 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, LEN gets a score of 44 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

Housing stocks have been weak over the last year due to concerns over the eventual impact of rising interest rates on the sector. The Federal Reserve has boosted rates nine times since the recession and four times in 2018 alone. It previously forecast an additional three rate hikes in 2019, but following the December meeting lowered its estimate to just two hikes. The housing sector is under pressure from higher mortgage rates but housing stocks have fallen to valuations that should limit too much additional downside as long as companies are able to keep pace with future estimates. LEN currently trades less than 10 times current earnings and with a forward P/E of just 6.2. Current forecasts call for earnings growth of 45% for the current year and 18% per annum growth over the next five years. If the Fed slows its rate hikes as now expected, and LEN is able to hit its estimates there could be a lot of upside in the stock, but Wall Street will quickly drive shares lower on any signs of weakness in the company’s quarterly report. Analysts remain bullish with an average price target of $61.80 on the stock.

LEN
About Lennar Corporation Class A

After merging with CalAtlantic in February 2018, Lennar is positioned to become the largest homebuilder in the United States. The company's homebuilding operations target first-time, move-up, and active adult homebuyers mainly under the Lennar brand name. Lennar's financial-services segment provides mortgage financing and related services to its homebuyers and third parties. Miami-based Lennar is also involved in multifamily construction.

  • Last Price:
    $47.57
  • Previous Close:
    $46.22
  • Change:
    $1.35 (2.92%)
  • Open:
    $46.34
  • Volume:
    3,917,675
  • Average Volume (100 Day):
    4,316,410
  • Market Capitalization:
    $15.4 B
  • Day's Range:
    $46.25 - $47.83
  • Dividend Yield:
    0.35%
  • 52-week Range:
    $65 - $37.29
  • P-E:
    8.70
  • EPS:
    $5.34
  • Earnings Date:
    3/27/19
  • Ex Dividend Date:
    1/24/19
  • Sector:
    Consumer Cyclical
  • Industry:
    Residential Construction
  • Analyst Average Recommendation:
    Strong Buy

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