Lennar (LEN) - 40.65% Below 52-Week High: Buy or Wait?

Stock Details

Lennar Corporation (LEN), a prominent company in the consumer cyclical sector within the residential construction industry, is based in USA and primarily trades on the NYSE.Currently, the stock is trading at $83.91. Over the past 52 weeks, it has ranged between $80.70 and $141.39. This places the current price at 59.3% of its 52-week high and 4.0% above its 52-week low. Recent trading volume was recorded at 2,137,688. The 14-day Relative Strength Index (RSI) stands at 51.66, suggesting neutral conditions. The stock is currently trading below its 50-day moving average of $128.97 by 34.94%. Similarly, it is below its 200-day moving average of $118.36 by 29.11%. The MACD histogram is 0.44, indicating bullish momentum (MACD Line: -1.45, Signal Line: -1.90). The International Securities Identification Number (ISIN) for this stock is US5260571048.

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

13.23

Below market average

Forward P/E

14.79

Earnings expected to decline

PEG Ratio

11.38

Potentially overvalued

Price to Book

0.93

EV/EBITDA

11.00

EPS (TTM)

$6.37

Price to Sales

0.62

Beta

1.39

Similar volatility to market

Q:How is LEN valued relative to its earnings and growth?

Lennar Corporation trades at a P/E ratio of 13.23, which is below the market average of approximately 20. This lower valuation could indicate the market has modest growth expectations, or it might represent an undervalued opportunity if the fundamentals are strong. Looking ahead, the forward P/E of 14.79 is higher than the current P/E, indicating analysts expect earnings to decline over the next year. The PEG ratio of 11.38 indicates a premium valuation even accounting for growth.

Q:What is LEN's risk profile compared to the market?

With a beta of 1.39, Lennar Corporation is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 0.93 indicates the stock trades below its accounting value, which could signal value or distress.

Performance & Growth

Profit Margin

4.93%

Operating Margin

5.28%

EBITDA

$2.29B

Return on Equity

7.37%

Return on Assets

3.94%

Revenue Growth (YoY)

-5.20%

Earnings Growth (YoY)

-31.50%

Q:How profitable and efficient is LEN's business model?

Lennar Corporation achieves a profit margin of 4.93%, meaning it retains $4.93 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 5.28% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 7.37% and ROA at 3.94%, the company achieves moderate returns on invested capital.

Q:What are LEN's recent growth trends?

Lennar Corporation's revenue declined by 5.20% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings decreased by 31.50% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against RESIDENTIAL CONSTRUCTION industry averages for proper context.

Dividend Information

Dividend Per Share

$2.00

Dividend Yield

2.39%

Ex-Dividend Date

Jul 10, 2026

Dividend Date

Jul 24, 2026

Q:What dividend income can investors expect from LEN?

Lennar Corporation offers a dividend yield of 2.39%, paying $2.00 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Jul 10, 2026.

Q:How reliable is LEN's dividend for long-term investors?

The dividend sustainability can be assessed through the payout ratio - Lennar Corporation pays $2.00 per share in dividends against earnings of $6.37 per share, resulting in a payout ratio of 31.40%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Jul 24, 2026.

Company Size & Market

Market Cap

$20.3B

Revenue (TTM)

$32.74B

Revenue/Share (TTM)

$131.85

Shares Outstanding

210.51M

Book Value/Share

$89.75

Asset Type

Common Stock

Q:What is LEN's market capitalization and position?

Lennar Corporation has a market capitalization of $20.3B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 210.51M shares outstanding, the company's ownership is relatively concentrated. As a participant in the RESIDENTIAL CONSTRUCTION industry, it competes with other firms in this sector.

Q:How does LEN's price compare to its book value?

Lennar Corporation's book value per share is $89.75, while the current stock price is $83.91, resulting in a price-to-book (P/B) ratio of 0.93. Trading below book value can indicate the market perceives challenges ahead, or it might represent a value opportunity if the assets are quality and earnings can recover. Value investors often screen for P/B ratios below 1.0. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$88.54

5.52% upside potential

Analyst Recommendations

No analyst ratings available

Q:How reliable are analyst predictions for LEN?

0 analysts cover LEN with 0% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The bearish sentiment could create opportunity if analysts are wrong. The consensus target of $88.54 implies 5.5% upside, but targets are often adjusted to follow price moves rather than predict them.

Q:What is the Wall Street consensus on LEN?

Current analyst recommendations:The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Jul 12, 2026, 02:46 AM

Technical Indicators

RSI (14-day)

51.66

Neutral

50-Day Moving Average

$128.97

-34.94% below MA-50

200-Day Moving Average

$118.36

-29.11% below MA-200

MACD Line

-1.45

MACD Signal

-1.90

MACD Histogram

0.44

Bullish

Q:What does LEN's RSI value tell investors?

The RSI (Relative Strength Index) for LEN is currently 51.66, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being below the 50-day moving average, this shows mixed signals requiring careful analysis.

Q:How should traders interpret LEN's MACD and moving average crossovers?

MACD analysis shows the MACD line at -1.45 above the signal line at -1.90, with histogram at 0.44. This bullish crossover suggests upward momentum is building. The 50-day MA ($128.97) is above the 200-day MA ($118.36), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently below both MAs, confirming weakness.

Indicators last updated: Oct 21, 2025, 12:32 AM

Lennar Corporation (LEN) Stock