In a market that continues to challenge investors, Lennar Corporation (NYSE:LEN) stock has marked a new 52-week low, reaching a price level of $136.27. With a market capitalization of $39.37 billion and a P/E ratio of 9.39, InvestingPro analysis suggests the stock is currently trading below its Fair Value. The home construction company, which has been navigating a complex economic landscape marked by fluctuating interest rates and a cooling housing market, has seen its stock price retreat slightly over the past year. The 1-year change data for Lennar reflects a modest decline of 0.59%, underscoring the cautious sentiment that investors have shown towards the housing sector amidst broader market uncertainties. According to InvestingPro technical indicators, the stock's RSI suggests oversold conditions, while the company maintains a "GREAT" financial health score. This latest price movement places Lennar's stock at a critical juncture, as stakeholders closely watch for signs of stabilization or further volatility in the industry. Discover 14 additional exclusive insights and comprehensive valuation analysis for Lennar through InvestingPro's detailed research reports.
In other recent news, Lennar Corporation reported its fourth-quarter earnings, which fell short of analyst expectations. The company's adjusted earnings per share stood at $4.03, missing the analyst consensus of $4.20. Revenue was reported at $9.95 billion, below the estimated $10.06 billion, yet this represents an 8% year-on-year increase.
Lennar's Q4 performance included the delivery of 22,206 homes, with an average sales price of $430,000, a slight decrease from the previous year. The company's new orders of 16,895 homes were less than the anticipated 19,000, attributed to rising interest rates impacting affordability and sales pace.
In further developments, Lennar's guidance for the upcoming quarter was below Wall Street's forecasts, due to the impact of higher mortgage rates on demand. For the first quarter of 2025, Lennar expects to deliver between 17,000 and 17,500 homes, with an average sales price ranging from $410,000 to $415,000. The company also forecasts a gross margin on home sales of 19.0% to 19.25%, a decrease from 22.1% in Q4 2024.
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