Lennar Stock Buy Hold or Sell Recommendation

LEN-B Stock  USD 116.09  2.41  2.03%   
Assuming the 90 days horizon and your above-average risk tolerance, our recommendation regarding Lennar is 'Hold'. Macroaxis provides Lennar buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Lennar positions.
  
Check out Lennar Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For information on how to trade Lennar Stock refer to our How to Trade Lennar Stock guide.
In addition, we conduct extensive research on individual companies such as Lennar and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Lennar. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Execute Lennar Buy or Sell Advice

The Lennar recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Lennar. Macroaxis does not own or have any residual interests in Lennar or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Lennar's advice using the current market data and latest reported fundamentals.

Time Horizon

30  Days

Risk Tolerance

I am an educated risk taker
Execute Advice
Sell LennarBuy Lennar
JavaScript chart by amCharts 3.21.15
Hold

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

Over hypedDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Follows the market closelyDetails

Analyst Consensus

Strong SellDetails

Reporting Quality (M-Score)

Possible ManipulatorDetails
For the selected time horizon Lennar has a Risk Adjusted Performance of (0.15), Jensen Alpha of (0.39), Total Risk Alpha of (0.38) and Treynor Ratio of (0.45)
Macroaxis provides trade recommendations on Lennar to complement and cross-verify current analyst consensus on Lennar. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Lennar is not overpriced, please verify all Lennar fundamentals, including its shares owned by institutions, price to earning, price to sales, as well as the relationship between the number of shares shorted and price to book . Given that Lennar has a price to earning of 6.55 X, we recommend you to check Lennar market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Lennar Trading Alerts and Improvement Suggestions

Lennar generated a negative expected return over the last 90 days
The company has $2.26 Billion in debt which may indicate that it relies heavily on debt financing
Lennar has a poor financial position based on the latest SEC disclosures
About 74.0% of the company outstanding shares are owned by corporate insiders
Latest headline from finance.yahoo.com: Lennar Dips More Than Broader Market What You Should Know

Lennar Returns Distribution Density

The distribution of Lennar's historical returns is an attempt to chart the uncertainty of Lennar's future price movements. The chart of the probability distribution of Lennar daily returns describes the distribution of returns around its average expected value. We use Lennar price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Lennar returns is essential to provide solid investment advice for Lennar.
Mean Return
-0.39
Value At Risk
-3.25
Potential Upside
2.65
Standard Deviation
1.82
   Return Density   
JavaScript chart by amCharts 3.21.15-7.5-5.6-3.7-1.9-0.0951.663.315.066.88.55VARUpside 0.020.040.060.080.100.120.14
JavaScript chart by amCharts 3.21.15GOOGLE
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Lennar historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Lennar Cash Flow Accounts

202020212022202320242025 (projected)
Change In Cash23.0M1.9B1.8B(1.6B)(1.8B)(1.7B)
Free Cash Flow2.5B3.2B5.1B2.2B2.6B2.7B
Other Non Cash Items(685.1M)914.0M444.0M(1.6B)(1.5B)(1.4B)
Dividends Paid309.8M438.0M430.6M548.8M631.1M662.7M
Capital Expenditures65.2M57.2M99.8M171.5M197.2M207.1M
Net Income4.5B4.6B4.0B4.0B4.6B4.8B
End Period Cash Flow3.0B4.8B6.6B5.0B5.7B6.0B
Change To Inventory(2.0B)(2.4B)2.3B(285.1M)(256.6M)(269.4M)
Depreciation86.0M87.1M110.2M115.5M132.9M139.5M
Investments(114.2M)(128.3M)(111.8M)(302.6M)(272.3M)(258.7M)
Net Borrowings(1.0B)(2.3B)(1.1B)(214.0M)(192.6M)(202.2M)
Change To Netincome368.2M312.1M(332.4M)885.8M1.0B1.1B

Lennar Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Lennar or Household Durables sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Lennar's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Lennar stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
-0.39
β
Beta against Dow Jones0.88
σ
Overall volatility
1.77
Ir
Information ratio -0.21

Lennar Volatility Alert

Lennar exhibits very low volatility with skewness of 0.39 and kurtosis of 0.35. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Lennar's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Lennar's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Lennar Fundamentals Vs Peers

Comparing Lennar's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Lennar's direct or indirect competition across all of the common fundamentals between Lennar and the related equities. This way, we can detect undervalued stocks with similar characteristics as Lennar or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Lennar's fundamental indicators could also be used in its relative valuation, which is a method of valuing Lennar by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Lennar to competition
FundamentalsLennarPeer Average
Return On Equity0.14-0.31
Return On Asset0.0791-0.14
Profit Margin0.11 %(1.27) %
Operating Margin0.16 %(5.51) %
Current Valuation31.11 B16.62 B
Shares Outstanding32.01 M571.82 M
Shares Owned By Insiders74.15 %10.09 %
Shares Owned By Institutions25.11 %39.21 %
Number Of Shares Shorted224.16 K4.71 M
Price To Earning6.55 X28.72 X
Price To Book1.11 X9.51 X
Price To Sales0.90 X11.42 X
Revenue35.44 B9.43 B
Gross Profit7.98 B27.38 B
EBITDA5.16 B3.9 B
Net Income3.97 B570.98 M
Cash And Equivalents821.65 M2.7 B
Cash Per Share2.55 X5.01 X
Total Debt2.26 B5.32 B
Debt To Equity69.90 %48.70 %
Current Ratio8.20 X2.16 X
Book Value Per Share103.90 X1.93 K
Cash Flow From Operations2.4 B971.22 M
Short Ratio2.51 X4.00 X
Earnings Per Share14.31 X3.12 X
Price To Earnings To Growth1.10 X4.89 X
Number Of Employees13.27 K18.84 K
Beta1.67-0.15
Market Capitalization31.87 B19.03 B
Total Asset41.31 B29.47 B
Retained Earnings25.75 B9.33 B
Working Capital27.47 B1.48 B
Annual Yield0.02 %
Note: Disposition of 10000 shares by Mccall Jeffrey Joseph of Lennar at 113.205 subject to Rule 16b-3 [view details]

Lennar Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Lennar . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Lennar Buy or Sell Advice

When is the right time to buy or sell Lennar? Buying financial instruments such as Lennar Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Lennar in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Automobiles and Trucks Thematic Idea Now

Automobiles and Trucks
Automobiles and Trucks Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Automobiles and Trucks theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Automobiles and Trucks Theme or any other thematic opportunities.
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When determining whether Lennar offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Lennar's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Lennar Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Lennar Stock:
Check out Lennar Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For information on how to trade Lennar Stock refer to our How to Trade Lennar Stock guide.
You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Please note, there is a significant difference between Lennar's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lennar is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lennar's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.