"Since the 52-week closing low of $12.71 on 08/23/11, LEN's stock price has appreciated 62.6% versus a 10.0% gain for the S&P 500 during the same period," the firm said. "We do not foresee additional catalysts that could propel the name higher near term, but we envision homebuilding orders and/or better-than-expected Rialto results might represent upside risks for our assumptions."
Given the recent higher than expected order growth of Lennar rival KB Home (KBH) and Lennar's own performance last quarter, Guggenheim acknowledged the company could come in ahead of its estimate for orders of 2520 in the fourth quarter, but the firm doesn't see this possibility alone as enough to warrant pushing the stock higher. Guggenheim is expecting earnings of 13 cents a share from Lennar in the quarter, 4 cents below consensus.
It's also worth noting that Lennar was flagged by Data Explorers on Tuesday as one of most shorted large-cap companies reporting this week with 17% of its outstanding stock on loan. Supervalu (SVU), also reporting its quarterly results before the open, tops the list with 24.4% of its outstanding shares held short as of Dec. 15.
Interested in more on Lennar? See TheStreet Ratings' report card for this stock.Wall Street is expecting earnings of 24 cents a share on revenue of $8.42 billion from Supervalu in its fiscal third quarter, which ended back in November. The stock is up 4.5% in the past year, but based on Tuesday's close at $83.39, it's seen a bounce of 34% since hitting a 52-week low of $6.26 in early October. The bear camp is crowded ahead of the report with 13 of the 17 analysts covering the shares at hold (10), underperform (2), or sell (1). Other companies reporting on Wednesday include 99 Cents Only Stores (NDN), DragonWave (DRWI), EXFO Electro-Optical (EXFO), H.B. Fuller (FUL), and SemiLEDs (LEDS). The economic calendar features the Mortgage Bankers Association's weekly index of application activity at 7 a.m. ET, weekly crude inventories at 10 a.m. ET, and the Federal Reserve's Beige Book for January, which is set for release at 2 p.m. ET. And finally, Urban Outfitters (URBN) was the big mover in after-hours action, losing more than 14% following the resignation of CEO Glen Senk, who was in charge since May 2007. --Written by Michael Baron in New York.
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