Home > Should you buy Lennar stocks ahead of the Q4 FY2021 earnings?

Should you buy Lennar stocks ahead of the Q4 FY2021 earnings?

Lennar Corporation (NYSE:LEN) reports its quarterly earnings this week, on December 16. The market expects EPS of $4.16. 

Lennar is an American homebuilding company from Miami, Florida. It builds single-family attached and detached homes and offers residential mortgage financing, among others.

On December 16, at 11:00 AM ET, the company will report its Q4 FY2021 earnings. The market expects EPS in line with the ones reported in the same period last year, or $4.16.

Lennar is one of the oldest publicly listed companies. It has been present on the NYSE for 49 years, and last year it built close to 53k homes in America.

How did Lennar's stock price perform this year?

Lennar's stock price outperformed the S&P 500 index this year. It is up +53.36% YTD, and it almost tripled during the COVID-19 pandemic. The company operates with a gross profit margin of 26.24%, lower than the 35.89% sector median, but it has an EBIT margin for the last twelve months higher than the sector median by 116.90%.

Moreover, the company is relatively fair valued at the current market price, as shown by the P/E Non-GAAP ratio of 10.55, lower than the sector median by -21.41%.

Is the company paying a dividend?

Lennar pays a quarterly dividend. The company's dividend yield is 0.86%, and the payout ratio is 8.01%. Moreover, the five-year dividend growth rate is 38.45%.

What do analysts say about Lennar's stock price?

Analysts have bullish opinions about Lennar's stock price. Out of the 42 analysts covering the company, 25 have buy ratings while 17 have neutral ones. No analyst has sell issued a sell rating, and the highest price target for the company's stock price is $160.

Most recently, Goldman Sachs has upgraded its rating to buy, with a price target of $140, while Raymond James Financial has maintained its buy rating with a target of $120.

Lennar is one of the companies that benefited the most from the rise in home prices during the pandemic and the stock price fully reflected it. It builds new homes in 21 states across the United States and the annual revenue estimate for the fiscal period ending November 2022 is $32.17 billion.

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