LEN data by YCharts
(LEN - Get Report)
Strong third-quarter earnings growth is expected from the home builder before the market opens on Monday. The consensus mean is 28 cents a share, a gain of 17 cents (60.7%) from 11 cents during the corresponding quarter last year.
Before the previous LEN's earnings release on June 27, the closing price was $28.70. In comparison to a recent price of $36.60, shares are up 27.5%.
With the Fed committed to a housing recovery, it didn't take long for investors to figure out, as in "Wall Street," that "Blue horseshoe loves Anacott Steel." Blue horseshoe has nothing on the Fed when it comes to moving stocks.
The mean fiscal year estimate price-to-earnings ratio is 12.7, based on earnings of $2.82 per share this year. Dollar for dollar, the earnings multiple is reasonable, as long as the housing market doesn't take another turn for the worse. Again, with the Fed backstopping the space, if the housing market falls we may have bigger problems to deal with.
The current yield is .45% and pays 16 cents annually. In the last month, the stock has really moved higher with a 12.7% increase (investors should send a thank you note for the dividend and price appreciation to Fed Chairman Ben Bernanke).
Short interest with this stock is very high. More than one in five shares is short. Shorts are the smart money, but when they pile on this hard it can backfire, too. The proportion of the float short is 21.9%. (Note to short-sellers: Never fight the Fed.)