$178.66
arrow_drop_up5.55%Is LEN a Buy or Sell based on AI Analysis?
Fundamental Analysis
Lennar Corp's fundamental analysis reveals several key indicators that provide insight into the company's financial health and performance. With a market capitalization of $46.17 billion and a price-to-earnings ratio of 11.85, investors can gauge the company's size and potential for growth relative to its earnings. Additionally, Lennar's strong return on assets of 9.29% and return on equity of 15.9% demonstrate efficient asset utilization and profitability, respectively. The company's healthy free cash flow margin of 14.84% also indicates its ability to generate cash after accounting for operating expenses and capital expenditures. On the other hand, Lennar's dividend yield of 1.16% and annual dividends per share of $1.62 suggest a commitment to returning value to shareholders through regular dividend payments. The company's positive revenue growth of 1.67% further underscores its ability to increase sales and generate revenue. Additionally, Lennar's low debt-to-equity ratio of 0.17 indicates a conservative approach to financing and a lower level of financial risk. These fundamental indicators collectively provide investors with valuable insights into Lennar Corp's financial stability, profitability, and growth potential in the market.
Positive Development
Lennar Corp has consistently shown an increase in stock price over the past weeks, indicating positive investor sentiment. The company's gross margin has shown a positive trend, indicating a strong profitability position. Lennar Corp has been recognized as a trending stock, which could attract more investors and drive up the stock price.
Negative Development
Lennar Corp's stock price has shown a downward trend in the recent weeks, which could be a concern for investors. The company's current ratio is 15.107, which is relatively low, indicating that the company might struggle with its short-term debt obligations. Lennar Corp's total debt to equity ratio is 0.1875, which could be a concern for investors as it indicates high levels of debt relative to equity.
Technical Analysis
Lennar Corp (LEN) currently has a technical rating of NEUTRAL, indicating a balanced stance in the market. The stock's price is hovering around $162.59, which represents a 3.11% decrease from the previous close of $167.81. The stock has shown a seven-day price change of -2.49%, with a one-month price change of 1.31%. Additionally, the stock has a fifty-two-week high of $172.59 and a low of $100.95, with a fifty-two-week price change percent of 54.48%. The technical indicators for Lennar Corp show one buy indicator (ATR), four hold indicators (MACD, ADX, ROC, STOCHRSI), and three sell indicators (RSI, CCI, WILLR), providing a comprehensive overview of the stock's current market position. Moreover, Lennar Corp's technical analysis also reveals a beta of 1.52, indicating the stock's volatility compared to the overall market. The company's stock sector is classified as Consumer Cyclical, with a stock sector change of 33.43% in the past year. Lennar Corp has a trailing PE ratio of 12.23 and a forward annual dividend yield of 0.01%. The stock has a technical indicator count for the month, with one buy indicator (ATR), four hold indicators (MACD, ADX, ROC, STOCHRSI), and three sell indicators (RSI, CCI, WILLR), offering a comprehensive technical analysis for investors.Overall, Lennar Corp's technical analysis provides essential insights into the stock's performance and market positioning for potential investors to consider.
Conclusion and recommendation
Based on the data provided, Lennar Corp (LEN) is a stock in the Consumer Cyclical sector with a current price of $162.59. The company has a market cap of $46.17B and a dividend yield of 1.16%. Lennar Corp has shown consistent revenue growth of 1.67% and a net profit margin of 11.5%. The company's financial health is demonstrated through its strong current ratio of 12.64 and low debt to equity ratio of 0.17. Lennar Corp also has a solid return on equity of 15.9% and a trailing PE ratio of 12.23, indicating potential value for investors. In conclusion, Lennar Corp appears to be a stable investment option in the consumer cyclical sector. The company's strong financial performance, consistent revenue growth, and low debt levels make it an attractive choice for investors seeking long-term growth and dividend income. However, investors should keep an eye on factors such as market volatility, housing market trends, and overall economic conditions that could impact Lennar Corp's performance in the future. Overall, Lennar Corp presents a compelling investment opportunity for those looking to add a reliable consumer cyclical stock to their portfolio.