Latest news with #LennarCorporation
Forbes
2 days ago
- Business
- Forbes
What To Expect From Lennar's Earnings?
CANADA - 2025/02/25: In this photo illustration, the Lennar Corporation logo is seen displayed on a ... More smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) Lennar (NYSE:LEN), one of the largest home construction firms in the U.S., plans to release its earnings around June 16, 2025, for a quarter that is expected to have experienced a slowdown in business due to ongoing difficulties in the U.S. housing market caused by high home prices and elevated mortgage rates. The consensus anticipates earnings of approximately $1.96 per share, a decrease from $3.38 per share in the same quarter last year, while revenues are expected to be around $8.2 billion, reflecting a 6% decline from the previous year. Lennar currently has a market capitalization of $29 billion. Revenue over the past twelve months was $36 billion, with an operational profit of $4.6 billion and net income of $3.7 billion. Therefore, for those seeking potential gains with less volatility than individual stocks, the Trefis High Quality Portfolio offers an alternative, having outperformed the S&P 500 and generated returns exceeding 91% since its inception. See earnings reaction history of all stocks Here are some insights regarding one-day (1D) post-earnings returns: Further information on observed 5-Day (5D) and 21-Day (21D) returns after earnings is compiled along with the statistics in the table below. LEN 1D, 5D, and 21D Post Earnings Return A comparatively less risky strategy (though not helpful if the correlation is weak) involves understanding the correlation between short-term and medium-term returns following earnings. By identifying pairs with the highest correlation, traders can execute suitable trades. For instance, if 1D and 5D show the greatest correlation, a trader can take a "long" position for the next five days should the 1D post-earnings return be positive. Below is some correlation data based on five-year and three-year (more recent) history. Note that the correlation 1D_5D indicates the correlation between 1D post-earnings returns and subsequent 5D returns. LEN Correlation Between 1D, 5D, and 21D Historical Returns Occasionally, the performance of peers can influence post-earnings stock reactions. Indeed, pricing could start prior to the earnings announcement. Below is historical data comparing Lennar's post-earnings performance with peers that reported earnings right before Lennar. For a fair comparison, peer stock returns also indicate post-earnings one-day (1D) returns. LEN Correlation With Peer Earnings Discover more about the Trefis RV strategy that has exceeded its all-cap stocks benchmark (which includes the S&P 500, S&P mid-cap, and Russell 2000), delivering robust returns for investors. Additionally, if you desire upside with a smoother experience than investing in an individual stock like Lennar, consider the High Quality Portfolio, which has outperformed the S&P and achieved returns exceeding 91% since its inception.
Yahoo
02-05-2025
- Business
- Yahoo
Lennar Corporation (LEN): Among The Lowest PE Ratio Stocks in S&P 500
We recently published a list of . In this article, we are going to take a look at where Lennar Corporation (NYSE:LEN) stands against other most undervalued stocks. Big tech stocks just suffered a massive hit, with the Magnificent Seven shedding a combined $1.8 trillion in market value over two brutal trading days at the beginning of April 2025. The iPhone-maker was hit the hardest, dropping more than $533 billion, partly due to new tariffs targeting its overseas production. Elon Musk's EV giant fell over 10% on April 4, and Wall Street's semiconductor darling lost nearly $400 billion. Jeff Bezos' e-commerce powerhouse also saw its worst losing streak since 2008. The selloff came after Donald Trump's newly announced tariffs sparked fears of a global trade war and potential recession. It did not just impact the mega-caps; the pain spread across the tech sector, which saw steep declines in stock prices. Even semiconductor stocks, although not yet directly impacted by tariffs, are being dragged down by growing uncertainty. Amidst this volatile market landscape, Veteran investor Bill Nygren noted that the chaos caused by Trump's steep tariffs has opened up a rare window for long-term investors to scoop up undervalued stocks. While he admits the uncertainty is not great for investors and could lead to inflation and slower growth, he sees opportunity in the selloff. Nygren pointed out that many quality companies, including major airlines, banks, and media firms, are now trading at dirt-cheap valuations. Some of them are trading under 7 or 8 times earnings because of overly negative investor sentiment. Nygren believes that if you hold these types of stocks long enough, there is a good chance they will deliver solid returns. Hedge fund billionaire Warren Buffett also endorses Bill Nygren's approach. Buffett made his $165 billion fortune by practicing value investing. He is known for buying stocks that are undervalued compared to their true worth and holding onto them for the long run. His approach focuses on companies with robust fundamentals, solid management, and potential for future growth, rather than chasing after risky or short-term trends. Value investing involves looking for stocks with low price-to-earnings ratios, and it often requires investors to go against the market's emotions and short-term movements. A construction crew installing roof tiles on a newly built row home. For this article, we used the Finviz screener and filtered out S&P stocks. Then, we applied a filter to arrange these stocks in ascending order of P/E ratios. We picked the 10 stocks with the lowest P/E ratios to compile this list. We have also mentioned the hedge fund sentiment around the holdings as per Insider Monkey's Q4 2024 database, ranking the list from least to most hedge fund holders. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). P/E Ratio as of April 29: 7.89 Number of Hedge Fund Holders: 70 Lennar Corporation (NYSE:LEN) is a major US homebuilder, offering a range of homes from single-family to luxury properties. The company operates in different areas, including home construction, land development, and multifamily rentals. On April 4, UBS analysts reiterated a Buy rating and a $164 price target on Lennar. The analysts are positive about Lennar's ability to align sales with production and stay agile in a changing market. LEN ranks 3rd on our list of stocks with a low PE ratio. On April 9, Lennar Corporation (NYSE:LEN) declared a quarterly dividend of $0.50 per share for both Class A and Class B common stock. The dividend will be paid on May 7, to shareholders on record as of April 23. Lennar Corporation (NYSE:LEN) reported Q1 2025 earnings of $520 million, down from $719 million a year ago. When excluding tech investment losses, earnings came in at $567 million, or $2.14 per share. The company exceeded its guidance by delivering over 17,800 homes and securing more than 18,300 new orders during the quarter. Despite tighter margins, Lennar maintained a strong balance sheet, buying back $703 million in stock, issuing dividends, and ending the quarter with $2.3 billion in cash and no debt on its $3 billion credit line. According to Insider Monkey's Q4 data, 70 hedge funds were bullish on Lennar Corporation (NYSE:LEN), compared to 68 funds in the preceding quarter. Greenhaven Associates was the largest stakeholder of the company, with 9.4 million shares worth over $1 billion. Overall, LEN ranks 3rd among the lowest PE ratio stocks in the S&P. While we acknowledge the potential of LEN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than LEN but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
05-04-2025
- Automotive
- Yahoo
Lennar Corporation (LEN): Jim Cramer Spots Opportunity – Will Falling Rates Boost Lennar?
We recently published a list of . In this article, we are going to take a look at where Lennar Corporation (NYSE:LEN) stands against other stocks that Jim Cramer discusses. In his appearance on CNBC's Squawk on the Street on Thursday, the day after President Trump unveiled his tariffs to reset America's trade policies, Jim Cramer shared what will follow the tariffs. According to Cramer, the tariffs are just the first piece of the President's economic strategy. He commented: 'I think that next is the tax cut that we get because there will be a lot of revenue because as David said they can't move. No, look, when the mills come back, they're made up of robots. That's just the way it is.' As to what consumers should do before the tariffs hit, Cramer believes that 'You buy an iPhone. Yes. And you buy a car,' as these products are likely to see the steepest price increases once the rules make their way into supply chains. The CNBC host also commented on what might happen to the auto industry as tariffs potentially raise prices and affect demand. According to Cramer: 'Well Q2 it depends on where we are in terms of the drop off. But autos, you know, you gotta buy a car now. I mean, it's a great time to buy a car. Used car prices will spike.' He also shared his thoughts on whether Deutsche was right about the tariff rollout and calculations presenting a larger risk about decision-making in the Trump administration 'Well no, it's just they don't want you to, they want you to come back here as they just made it so that wherever you go, it's bad,' said Cramer. As to whether the tariffs are a negotiating strategy employed by the President to secure favorable trading terms, Cramer doesn't believe so. 'There's no negotiations. You just, this is it. . . it's not a negotiation,' he believes. According to Cramer, firms that shifted manufacturing to Vietnam, he pointed out that businesses that shifted supply chains were proven wrong. 'And I gotta tell you, that's turned out to be the one that people thought if we go to Vietnam we're safe. And it was just dead wrong,' he said. Cramer also commented on whether Chinese companies putting factories in Mexico might let them evade tariffs. As he believes that the new rules are quite airtight, this won't be the case according to him: 'No, they're getting away with it right now. I don't think they're gonna get away with. Mexican parts is a really big flashpoint for the American companies and they don't know the answer. Even the top people don't know the answer about the Mexican parts. And how it's gonna play out.' To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC's Squawk on the Street aired on April 3rd. For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A construction crew installing roof tiles on a newly built row home. Number of Hedge Fund Holders In Q4 2024: 70 Lennar Corporation (NYSE:LEN) is a homebuilding company whose shares are down by 8.6% year-to-date. The stock has struggled as the firm has warned about weak housing demand amidst high interest rates. Cramer has discussed the shares in detail in his previous appearances. He has pointed out that dropping home prices is not the 'end of the world' for Lennar Corporation (NYSE:LEN) but added that the shares could drop further if the Fed continues to hold interest rates. Here are his latest thoughts: 'I mean, do you buy the homebuilders. They do well, rates are coming down. Mortgage rates are coming down pretty severely. How about buying Lennar? It's all the way down. It's levered to mortgage rates. . .so maybe you buy Lennar, maybe you buy Toll Brothers.' Overall, LEN ranks 5th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of LEN, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than LEN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
29-03-2025
- Business
- Yahoo
Jim Cramer on Lennar Corporation (NYSE:LEN): 'Be more thoughtful'
We recently published a list of Jim Cramer Discusses These 11 Stocks & Reveals Why Tech Stocks Are Down. In this article, we are going to take a look at where Lennar Corporation (NYSE:LEN) stands against other stocks that Jim Cramer discussed. In a recent appearance on CNBC's Squawk on the Street, Jim Cramer discussed his takeaways from last week's GTC conference. The event saw Wall Street's top AI GPU firm unveil its plans for enabling a robot revolution among others. Commenting on his experience, Cramer speculated that he would have understood the AI wave much better had he had an education in engineering instead of in the liberal arts: 'It was a week of intimidation. Because I'm a liberal arts person. . . .it has its advantages, I mean we've read Shakespeare, studied the Bible. . .but I had to have everything explained to me in order to be able to be in the room. But once it was explained to me, it was very clear that the bulls are right about AI. The bulls are right about the money it's going to take and the speed it's going to take. This is about need for speed now. And it's a war among Grok and ChatGPT.' While the conference came with big announcements, its impact on the stock market was negligible. March has been a tough month for stocks, with technology companies particularly failing to recover from a selloff that wiped $4 trillion in market value from the flagship S&P index over its post-election high. Cramer explained why tech stocks haven't performed well. According to him: 'One of the reasons why the tech stocks have gotten hit is almost everyone's convinced that if you import anything, there's going to be 20% tax or 25% tax. So therefore, all numbers have to come down. If you could get a reprieve on that, then the multiple expansion on just regular, garden variety tech would be extraordinary. You'd have to put your money on that. It could lead over to Mag 7, yes. I think our great friend Mike Wilson, with his weekly warmup of Mag 7, I think it was a significant piece. And a lot of it has to do with this notion that these stocks have been made cheap, by both, by bonds, I think they've been made cheap by tariffs. So you would revert to them, rather than the lower quality stocks that make up the rest of the S&P 500 equal weight. I think that this is important David, because you know we've been taken up by companies that neither you nor I think are great companies. But they're just, companies. Nothing special.' To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC's Squawk on the Street aired on March 24th. For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Hedge Fund Holders In Q4 2024: 70 Lennar Corporation (NYSE:LEN) is a frequent feature of Cramer's morning show. He has shared that the firm is using AI to optimize its workforce allocations and remained overall positive about the company. Lennar Corporation (NYSE:LEN)'s shares are down by 5.3% year-to-date due to declining sentiment about the US economy. Cramer has also commented that the firm will be crucial for building affordable homes in America. Here are his latest comments: '[On a recent downgrade from Evercore] Yeah, I'll tell you why. Remember I was talking about how, people didn't like Micron, and they didn't like FedEx last week. . . Now, David, here's a downgrade about Lennar. Lennar bucked the trend. As rates went up, very rarely have you ever seen homebuilder stocks go up. Now, rates are allegedly coming down, right. And you usually are supposed to buy these stocks. Everyone downgraded Lennar after that quarter. So, I think you would say, well where were you guys at 180, but now, at 115 they're all against it. I'm beginning to think you have to take the other side of the trade. I know that the costs are going up because of the tariffs. I know that rates are not coming down the way they want them. However, when you look at valuation, they're suddenly becoming worth a lot more than I thought. And so I don't wanna throw away Lennar.' Overall, LEN ranks 4th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of LEN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LEN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
29-03-2025
- Business
- Yahoo
Lennar Corporation (LEN) Trader Lower Due to a Severe Housing Supply Deficit
River Road Asset Management, an investment management company released its 'River Road Large Cap Value Select Fund' Q4 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, AMG River Road Large Cap Value Select Fund returned 0.43% compared to (1.98%) return for the Russell 1000® Value Index. For the year 2024, the fund returned 24.59% significantly outperforming Index return of 14.37%. Stocks rallied in November after a Republican victory but declined sharply following hawkish Fed comments. Shorter duration stocks, including small caps and value, lost most of their post-election gains by the end of December. For more information on the fund's best picks in 2024, please check its top five holdings. In its fourth quarter 2024 investor letter, River Road Large Cap Value Select Fund emphasized stocks such as Lennar Corporation (NYSE:LEN). Lennar Corporation (NYSE:LEN) is a US-based homebuilder that operates primarily under the Lennar brand. The one-month return Lennar Corporation (NYSE:LEN) was -1.38%, and its shares lost 28.61% of their value over the last 52 weeks. On March 27, 2025, Lennar Corporation (NYSE:LEN) stock closed at $117.98 per share with a market capitalization of $31 billion. River Road Large Cap Value Select Fund stated the following regarding Lennar Corporation (NYSE:LEN) in its Q4 2024 investor letter: "Lennar Corporation (NYSE:LEN), one of the largest U.S. homebuilders, was the lowest contributor to active return in Q4 despite strong long-term fundamentals driven by a severe housing supply deficit of approximately two million units. The company has demonstrated remarkable market dominance, expanding its market share from under 8% pre-pandemic to 11.4% currently, powered by its differentiators in financing, land acquisition, and operational scale. This growth trajectory is particularly impressive given the challenging high-interest rate environment, where Lennar's in-house mortgage division enables it to offer more attractive financing terms than smaller competitors. The company's strategic evolution continues with the planned Millrose real estate investment trust (REIT) spinoff, streamlining operations toward an asset-light model that could drive higher valuation multiples. A construction crew installing roof tiles on a newly built row home. Lennar Corporation (NYSE:LEN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 70 hedge fund portfolios held Lennar Corporation (NYSE:LEN) at the end of the fourth quarter which was 68 in the previous quarter. While we acknowledge the potential of Lennar Corporation (NYSE:LEN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. We covered Lennar Corporation (NYSE:LEN) in another article, where we shared Hardman Johnston Global Equity Strategy's views on the company. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
