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Miami-based Lennar Corporation (LEN) operates as a homebuilder in the United States. With a market cap of $49.5 billion, Lennar operates through Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar Other segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," Lennar fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the residential construction industry.
Lennar has slipped 3.4% from its all-time high of $186.60 achieved on Aug. 26. LEN gained 16% over the past three months, outpacing the Dow Jones Industrials Average’s ($DOWI) 4.8% gains during the same time frame.
Over the longer term, LEN stock looks even more appealing. LEN gained 51.9% over the past 52 weeks and 20.9% in 2024, exceeding DOWI’s 17.8% gains over the past year and 8.1% returns on a YTD basis.
To confirm the bullish trend, Lennar has mostly traded above its 50-day and 200-day moving averages over the past year with some fluctuations.
Shares of Lennar plunged 5% after the release of its Q2 earnings on June 17. The company reported a robust 9% annual revenue growth, reaching $8.8 billion, while its net earnings attributable to shareholders surged by 9.5% to $954.3 million. However, Lennar gave a lower gross margin and higher selling, general, and admin expenses guidance for Q3, potentially leading to a decline in stock price.
More recently, on Aug. 19, LEN rose 2.2% after a recent Barron report suggested that U.S. home sales are expected to improve in the coming quarters due to a potential decrease in long-term mortgage rates.
Lennar’s competitor, PulteGroup, Inc. (PHM), has outperformed LEN. PHM has gained 64.4% over the past 52 weeks and 28.6% in 2024.
Among the 18 analysts covering the LEN stock, the consensus rating is a “Moderate Buy.” The mean price target of $181.70 represents a marginal upside from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
