Lennar Stock Alpha and Beta Analysis

LEN-B Stock  USD 116.09  2.41  2.03%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Lennar. It also helps investors analyze the systematic and unsystematic risks associated with investing in Lennar over a specified time horizon. Remember, high Lennar's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Lennar's market risk premium analysis include:
Beta
0.88
Alpha
(0.39)
Risk
1.77
Sharpe Ratio
(0.29)
Expected Return
(0.51)
Please note that although Lennar alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., Dow Jones Industrial index.) So in this particular case, Lennar did 0.39  worse than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Lennar stock's relative risk over its benchmark. Lennar has a beta of 0.88  . Lennar returns are very sensitive to returns on the market. As the market goes up or down, Lennar is expected to follow. At present, Lennar's Tangible Book Value Per Share is projected to increase significantly based on the last few years of reporting. The current year's Enterprise Value Over EBITDA is expected to grow to 6.95, whereas Book Value Per Share is forecasted to decline to 9.02.

Enterprise Value

801.56 Million

Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
  
Check out Lennar Backtesting, Lennar Valuation, Lennar Correlation, Lennar Hype Analysis, Lennar Volatility, Lennar History and analyze Lennar Performance.
For information on how to trade Lennar Stock refer to our How to Trade Lennar Stock guide.

Lennar Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Lennar market risk premium is the additional return an investor will receive from holding Lennar long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Lennar. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Lennar's performance over market.
α-0.39   β0.88
100%

Lennar expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Lennar's Buy-and-hold return. Our buy-and-hold chart shows how Lennar performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Lennar Market Price Analysis

Market price analysis indicators help investors to evaluate how Lennar stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Lennar shares will generate the highest return on investment. By understating and applying Lennar stock market price indicators, traders can identify Lennar position entry and exit signals to maximize returns.

Lennar Return and Market Media

The median price of Lennar for the period between Mon, Nov 25, 2024 and Sun, Feb 23, 2025 is 127.02 with a coefficient of variation of 9.94. The daily time series for the period is distributed with a sample standard deviation of 13.19, arithmetic mean of 132.66, and mean deviation of 11.63. The Stock received a lot of media exposure during the period.
 Price Growth (%)  
JavaScript chart by amCharts 3.21.1512345678910111213Dec2025Feb -20-15-10-505
JavaScript chart by amCharts 3.21.15Lennar Lennar Dividend Benchmark Dow Jones Industrial
       Timeline  
1
Lennar Reports Q4 Earnings What Key Metrics Have to Say
12/18/2024
2
Disposition of 10000 shares by Mccall Jeffrey Joseph of Lennar at 113.205 subject to Rule 16b-3
12/31/2024
3
This Analyst With 85 percent Accuracy Rate Sees Around 10 percent Upside In Alphabet - Here Are 5 Stock Picks For 2024 From Wall Streets Most Accurate Analysts
01/02/2025
4
Central Bank Trust Co. Acquires 482 Shares of Lennar Co.
01/21/2025
5
Tariff War Could Be Commercial Real Estate Play, KBW Says
02/03/2025
6
Stock market today SP 500, Nasdaq waver with Amazon set to highlight earnings rush
02/06/2025
7
Lennar Corp Shares Gap Down to 121.98 on Feb 7
02/07/2025
8
Millrose Properties to replace Ironwood in SP 600 at open on 210 MRPIRWDLEN
02/10/2025
9
Apollon Wealth Management LLC Has 1.59 Million Position in Lennar Co.
02/11/2025
10
FMR LLC Reduces Stake in Lennar Corp A Strategic Portfolio Adjustment
02/12/2025
11
Toll Brothers Stock Before Q1 Earnings Release To Buy or Not to Buy
02/13/2025
12
Tri Pointe Homes Q4 Earnings and Revenues Beat Estimates
02/18/2025
13
Lennar Dips More Than Broader Market What You Should Know
02/21/2025

About Lennar Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Lennar or other stocks. Alpha measures the amount that position in Lennar has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2022 2023 2024 2025 (projected)
Dividend Yield0.01190.0077040.008860.0122
Price To Sales Ratio1.061.340.380.56
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Lennar in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Lennar's short interest history, or implied volatility extrapolated from Lennar options trading.

Build Portfolio with Lennar

Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.

Build Diversified Portfolios

Align your risk with return expectations

By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
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 Backtesting, Lennar Valuation, Lennar Correlation, Lennar Hype Analysis, Lennar Volatility, Lennar History and analyze Lennar Performance.
For information on how to trade Lennar Stock refer to our How to Trade Lennar Stock guide.
You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Lennar technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Lennar technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Lennar trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

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