Lennar (LEN, $99.12) climbs, on +14% rise in Case-Shiller house index
Homebuilding stocks like Lennar rose Tuesday, following a record year-over-year increase in S&P CoreLogic Case-Shiller Index in April,
The 10-City Composite rose +14.4% year-over-year in April, compared to +12.9% in the previous month. This marked the highest gain in more than 30 years.
The 20-City Composite experienced a +14.9% year-over-year gain, up from +13.4% in the previous month. All 20 cities reported sharper price increases in the year ending April compared with the year ending March.
Craig Lazzara, managing director and global head of index investment strategy at S&P DJI,indicated that the demand increase may reflect an acceleration of purchases that “would have occurred anyway over the next several years."
"Alternatively, there may have been a secular change in locational preferences, leading to a permanent shift in the demand curve for housing," Lazzara said.
LEN in upward trend: price expected to rise as it breaks its lower Bollinger Band on May 22, 2023
LEN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 39 cases where LEN's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 53 cases where LEN's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
LEN moved above its 50-day moving average on June 02, 2023 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LEN advanced for three days, in of 306 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 317 cases where LEN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for LEN moved out of overbought territory on May 19, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 similar instances where the indicator moved out of overbought territory. In of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on May 22, 2023. 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 .
The Moving Average Convergence Divergence Histogram (MACD) for LEN turned negative on May 11, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 .
Fundamental Analysis (Ratings)
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is seriously undervalued 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 low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 65, placing this stock better than average.
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 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 significantly 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 (1.327) is normal, around the industry mean (6.761). P/E Ratio (6.959) is within average values for comparable stocks, (120.868). LEN's Projected Growth (PEG Ratio) (6.022) is slightly higher than the industry average of (2.346). Dividend Yield (0.013) settles around the average of (0.048) among similar stocks. P/S Ratio (0.949) is also within normal values, averaging (71.817).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a builder of residential buildings and provides residential mortgage, title and closing services
Industry Homebuilding
LEN and
Correlation & Price change
A.I.dvisor indicates that over the last year, LEN has been closely correlated with DHI. These tickers have moved in lockstep 94% of the time. This A.I.-generated data suggests there is a high statistical probability that if LEN jumps, then DHI could also see price increases.
