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Lennar (LEN) is one of the largest homebuilders in the U.S., which is an advantage and a problem at a time when home sales are still not as strong as before the Great Recession.

Lennar reports first-quarter earnings early Tuesday. Investors would be wise to lock in some profits now.

For the quarter that ended February, the company is expected to earn 52 cents per share on revenue of $1.86 billion, translating to year-over-year growth of 4% and 13%, respectively. For the full year, ending November, earnings are projected to climb 9.8% year over year to $3.80 per share, while revenue of $10.74 billion would mark a year-over-year increase of 13.3%.

At around $46, shares are down 5.5% for the year to date and 8.1% for the past 52 weeks. However, shares have risen along with other homebuilder stocks, such as KB Home (KBH) , which reported extremely good first-quarter earnings. That means the time to take profits in Lennar is right now.

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Remember, last month the market learned existing home sales tumbled 7.1% in February to a seasonally adjusted annualized pace of 5.08 million units. That's down from 5.47 million in January. The consensus estimate was for a decline of about 3% to 5.31 million.

Is the worst over? That's why after you take your profits you should find out by listening to Lennar's conference call at 11 a.m. ET on Tuesday.

The homebuilder could go either way. It did beat Wall Street's earnings estimates in 10 straight quarters and revenue is expected to rise. But earnings per share for the just-ended quarter are projected at rise 4%, or at one-third the rate of revenue.

So if you don't like risk, sell now and wait to hear what management says about Lennar's outlook for the next quarter and fiscal year before deciding what to do next.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.