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Has Lennar (LEN) Outpaced Other Construction Stocks This Year?

Zacks.com logo Zacks.com 12/6/2021

For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Lennar (LEN) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.

Lennar is one of 103 individual stocks in the Construction sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Lennar is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for LEN's full-year earnings has moved 7.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that LEN has returned about 47.3% since the start of the calendar year. In comparison, Construction companies have returned an average of 26.2%. This means that Lennar is performing better than its sector in terms of year-to-date returns.

One other Construction stock that has outperformed the sector so far this year is Toll Brothers (TOL). The stock is up 57% year-to-date.

The consensus estimate for Toll Brothers' current year EPS has increased 1.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Lennar belongs to the Building Products - Home Builders industry, a group that includes 19 individual stocks and currently sits at #52 in the Zacks Industry Rank. This group has gained an average of 30.7% so far this year, so LEN is performing better in this area. Toll Brothers is also part of the same industry.

Investors with an interest in Construction stocks should continue to track Lennar and Toll Brothers. These stocks will be looking to continue their solid performance.

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