NEW YORK (
) -- Shares of
were downgraded by
The homebuilder was downgraded to
"The company's strengths can be seen in multiple areas, such as its revenue growth and solid stock price performance,"
wrote. "However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and feeble growth in the company's earnings per share."
Lennar reported first-quarter earnings this week of $15 million, or 8 cents a share, which beat
of 4 cents.
Shares of Lennar hit a 52-week high Wednesday of $28.28. The stock's 52-week low of $12.14 was set on Oct. 4.
Lennar has an estimated price-to-earnings ratio for next year of 19.91 times; the average for home construction companies is 24.47. For comparison,
has a lower forward P/E of 18.99;
forward P/E is 34.39.
Thirteen of the 25 analysts who cover Lennar rated it hold. Ten analysts gave the stock a buy rating and two rated it sell.
gives Lennar a
. The stock has risen 40.81% year to date.
The education company was downgraded to
"The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity,"
wrote. "However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."
Apollo Group reported this week
net income of $63.9 million, or 51 cents a share, a swing from a year-earlier loss of $64 million, or 47 cents.
The stock was also downgraded to neutral from outperform by Credit Suisse analysts this week.
Apollo Group's forward P/E is 11.71; the average for specialized consumer services companies is 15.05. For comparison,
has a lower forward P/E of 9.87;
ITT Educational Services'
forward P/E is 8.25.
Ten of the 19 analysts who cover Apollo Group rated it buy; nine analysts gave the stock a hold rating.
gives Apollo Group a
and hold rating. The stock has fallen 28.46% year to date.
-- Written by Alexandra Zendrian
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