Shares of homebuilder Lennar (NYSE:LEN) were little changed in today’s trading as investors await its Q2 earnings results on June 17 after the market closes. Analysts are expecting earnings per share to come in at $3.23 on revenue of $8.552 billion. This equates to 7.3% and 7.2% year-over-year increases, respectively, according to TipRanks’ data.
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Earnings per share growing faster than revenue is ideal because it demonstrates a degree of operating and financial leverage in the business. In addition, it’s worth noting that Lennar has beaten earnings estimates seven times during the past eight quarters, as pictured below:
Options Traders Anticipate a Fairly Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a large 6.46% move in either direction.
Is LEN a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on LEN stock based on 11 Buys, four Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 31% rally in its share price over the past year, the average LEN price target of $176.36 per share implies 13.75% upside potential.
