(LEN) Lennar - Ratings and Ratios

Lennar Corporation (NYSE:LEN) is a leading U.S. homebuilder with operations spanning multiple segments, including Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar Other. The company specializes in the construction and sale of single-family attached and detached homes, as well as the development of residential land and multifamily rental properties. Its financial services division provides mortgage financing, title insurance, and closing services, while also originating and selling commercial mortgage loans. Additionally, Lennar engages in fund investment activities, targeting a diverse range of buyers, including first-time, move-up, active adult, and luxury homebuyers. Founded in 1954 and headquartered in Miami, Florida, the company operates a vertically integrated business model designed to streamline the homebuying process and enhance profitability.

From a technical perspective, Lennars stock has shown recent weakness, with its 20-day SMA dropping to 110.01 from a 50-day SMA of 116.69 and a 200-day SMA of 148.59. This indicates a downtrend in recent months, with the stock trading at 103.71 as of the last price. The ATR of 4.55 suggests moderate volatility, which could persist in the near term. Fundamentally, the companys market cap stands at 27.56B USD, with a P/E ratio of 7.67 and a forward P/E of 10.70, indicating expectations for future earnings growth. The P/B ratio of 1.22 reflects a modest premium to book value, while the P/S ratio of 0.77 suggests the stock is reasonably valued relative to sales. Return on equity is strong at 16.32%, highlighting efficient use of shareholder capital.

Looking ahead, Lennars stock is expected to remain under pressure in the next three months as the housing market navigates higher interest rates and slowing demand. Technical resistance is likely to emerge near the 110-115 range, while support could hold around 95-100, based on recent price action and the ATR of 4.55. Fundamentally, the companys ability to adapt to changing market conditions will be critical, with a focus on cost management and maintaining profit margins. While the forward P/E of 10.70 suggests optimism about future performance, near-term challenges in the housing sector may limit upside. Overall, Lennar is well-positioned for long-term growth, but investors should monitor macroeconomic trends and company-specific execution in the coming months.