The surge in residential real estate has been one of the unexpected themes of 2020. Homebuilders have been posting strong results in the process, as millennials increasingly turn to remote work and ditch city centers for suburbs. One such homebuilder, Lennar, reported strong profits in Q4 as activity remained robust and as interest rates continue to anchor to record lows.
The question for investors is, will this housing strength continue? Or has the pandemic-induced wave of new homebuyers run its course, only to give way to softer activity in 2021? A.I.dvisor has some insight, with the analysis below comparing Lennar Corp., PulteGroup, and Toll Brothers.
he homebuilder reported higher profit in the fiscal fourth quarter as demand for homeownership remains elevated due to lower borrowing costs and the pandemic.According to our system of comparison, LEN is a better buy in the short-term than PHM and TOL.
LEN saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on November 13, 2025. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 53 instances where the indicator turned negative. In of the 53 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on October 31, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on LEN as a result. In of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LEN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for LEN entered a downward trend on October 20, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where LEN's RSI Indicator exited the oversold zone, of 21 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LEN advanced for three days, in of 309 cases, the price rose further within the following month. The odds of a continued upward trend are .
LEN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 72, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. LEN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.301) is normal, around the industry mean (19.762). P/E Ratio (11.391) is within average values for comparable stocks, (54.573). Projected Growth (PEG Ratio) (2.103) is also within normal values, averaging (1.399). Dividend Yield (0.017) settles around the average of (0.038) among similar stocks. P/S Ratio (0.866) is also within normal values, averaging (24.805).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a builder of residential buildings and provides residential mortgage, title and closing services
Industry Homebuilding