Lennar Corporation shares have declined double digits year-to-date, leaving the stock at 13.31 times forward earnings, well below the Zacks Construction sector’s 21.93 times and the S&P 500’s 21.76 times. The homebuilder also trades near 1.02 times book value and 0.66 times forward sales, yet a Zacks Rank of 5, or Strong Sell, signals that unfavorable earnings estimate revisions outweigh the apparent discount. Adjusted second-quarter fiscal 2026 earnings of $1.31 per share beat the consensus by 6.5% but fell 31.1% from $1.90 a year earlier, while total revenues of $7.94 billion missed estimates by 1.6% and declined 5.2% year over year. Management moderated the full-year delivery target to 82,000 to 83,000 homes, citing interest-rate pressure and geopolitical uncertainty, and the current fiscal-year earnings estimate has dropped 5.7% over the past four weeks. Lennar ended the quarter with $1.8 billion of homebuilding cash and total liquidity of $4.9 billion, no borrowings under its $3.1 billion revolving credit facility, and homebuilding debt to total capital of 15.8%, providing balance-sheet flexibility that supports patience while earnings momentum remains weak.
Lennar CorporationEarnings fell 31.1% YoY, revenues missed estimates, delivery target lowered, and earnings estimates revised down 5.7%
DR Horton Inc
PulteGroup Inc