Trade-Ideas: Lennar Corporation (LEN) Is Today's Unusual Social Activity Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Lennar Corporation (LEN) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Lennar Corporation as such a stock due to the following factors:
- LEN has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 7.14 mentions/day.
- LEN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $216.9 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.EXCLUSIVE OFFER: Get the inside scoop on opportunities in LEN with the Ticky from Trade-Ideas. See the FREE profile for LEN NOW at Trade-IdeasMore details on LEN: Lennar Corporation, together with its subsidiaries, is engaged in homebuilding activities in the United States. The stock currently has a dividend yield of 0.4%. LEN has a PE ratio of 18.6. Currently there are 5 analysts that rate Lennar Corporation a buy, no analysts rate it a sell, and 8 rate it a hold.The average volume for Lennar Corporation has been 4.5 million shares per day over the past 30 days. Lennar has a market cap of $6.9 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.50 and a short float of 17.9% with 5.89 days to cover. Shares are up 2.6% year-to-date as of the close of trading on Tuesday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Lennar Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 28.9%. Since the same quarter one year prior, revenues rose by 41.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has significantly increased by 218.90% to $210.03 million when compared to the same quarter last year. In addition, LENNAR CORP has also vastly surpassed the industry average cash flow growth rate of 59.09%.
- LENNAR CORP has improved earnings per share by 30.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, LENNAR CORP reported lower earnings of $2.14 versus $3.10 in the prior year. This year, the market expects an improvement in earnings ($2.42 versus $2.14).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Household Durables industry average, but is greater than that of the S&P 500. The net income increased by 31.9% when compared to the same quarter one year prior, rising from $124.34 million to $164.08 million.
- The gross profit margin for LENNAR CORP is currently lower than what is desirable, coming in at 25.82%. Regardless of LEN's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, LEN's net profit margin of 8.56% compares favorably to the industry average.
- You can view the full Lennar Corporation Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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