Lennar Corporation (LEN)

Lennar stock forecast: buy or sell

Lennar stock outlook

  • Lennar closed today at $76.28 (-4.47%) prior to reporting earnings next March 2021 at 12:00
  • Lennar posted its earnings report
  • Lennar marked a new all-time high today, setting the new record at $80.06.
  • Lennar marked a new all-time high today, setting the new record at $80.06.
  • The stock is configuring an uptrend pattern since last March, when it bottomed at $25.30. This uptrend marked a 201.5% gain
  • Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States.
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Important:
The comments contained in this article are personal and not recommendations for you to buy or sell shares. The author of this text does not know the individual positions of the reader, his or her finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are published for general educational purposes only

Lennar stock charts overview

Should I buy Lennar stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is LEN stock a buy?

In the current situation of Lennar there is just one buy setup eligible:

Uptrend buy setup

Lennar stock continues to trend higher since last March and marked a gorgeous 201.5% gain. Price marked a pull back in this uptrend at $71.34 on September 4, and since then it bounced off a 6.92%. Breaking out above $80.00 - it's last top - will be a good entry point if Lennar resumes the uptrend. If you decide to enter this trade, the suggested stop loss is at $72.00

Buy setupBuy pointStop lossRisk
Uptrend buy setup$80.00$72.0010%
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Should I sell Lennar stock?

When you own stock shares with some profit, it's really difficult to decide the best moment to sell and get your benefits. Trading strategies let us to avoid impetuous decisions based on our personal feelings or the buzz surrounding the market. When selling, as well as buying, our setups are very easy to follow but are only applicable for selling shares you already own, not for shorting Lennar stock

As a rule of thumb, you should never keep an operation that leads to losses greater than those expected upon purchase. When to sell your stock always has to be determined by the stop-loss (automatic or manual)

Is it time to sell Lennar stock?

In the current situation of Lennar there is not any eligible sell setup, so Lennar stock holders with operations in green can keep their positions

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Analysts' recommendations to buy or sell Lennar stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, 8 ratings were published for Lennar. General sentiment is bullish, with 6 out of 8 posting positive outlooks

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Lennar ratings

Brokerage firmRating
Sep 11th, 2020
BTIG Research Strong buy
Sep 14th, 2020
Barclays Buy
Sep 15th, 2020
Raymond James Buy
Sep 16th, 2020
Bank of America Neutral
Sep 16th, 2020
Royal Bank of Canada
Sep 16th, 2020
Wedbush Buy
Sep 16th, 2020
Wells Fargo & Company Buy
Sep 17th, 2020
Susquehanna Bancshares NeutralBuy

Technical analysis

Since last March, Lennar has been drawing an uptrend that so far marked a gorgeous 201.5%. The price shows higher highs and higher troughs, and along the way provided some entry points for those who wanted to trade in. Latest low was on September 4, when price bounced at $71.34. Currently, it swings in a consolidation between its last top ($80.00) and its last bottom ($71.34)

LEN at new All-time Highs

Today, Lennar marked new all-time highs (ATH) again at $80.06

SMAs overview

Moving averages are simple tools for investors to gauge momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

Supports and resistances

Market investors use supports and resistances to spot price points on a chart that may work as barriers, preventing the price of shares to move up or down. Supports are levels where the price tends to stop as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down this level, it will probably continue descending until finding another support level. On the other side, a resistance level is where the price may find resistance as it moves up. Again, this means that the price is more likely to "bounce off" at this level, and if it finally breaches this level, it will climb more easily until it approaches the next resistance

The current resistances are:

  • R1: $80.00 (4.88% above)
  • The current supports are:

  • S1: $71.34 (-6.48% below)
  • S2: $71.25 (-6.59% below)
  • S3: $71.04 (-6.87% below)
  • Bollinger bands

    The so-called Bollinger bands are a widespread technique that was created by John Bollinger. It is made up of 3 lines that are plotted superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. It is intended to chart the current and historical strength or weakness of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by stock traders

    The RSI dropped below the overbought level of 70 in late August after just crossing to the overbough zone for 1 day (weak signal). The RSI reading today was 49.97. Since RSI lost the overbought zone, Lennar stock collapsed a 3.14%

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    Earnings and financials

    Lennar hosted the quarterly investors event and released the Q3 report.

    In comparing, the EPS for the same quarter last year was $1.59, so current EPS is a decrease of -100%. Looking at revenue, figures scarcely moved compared to $0.00 same quarter last year.

    Lennar will host the earnings call next March 2021. Market expects an earnings per share (EPS) of $2.06, compared to Q3 that made $0.00. Financial reporting day has an additional risk for stock investors as the data posted can gap up or down the price with exceptionally low volume and not honouring your buy/stop-loss orders. Have a look company's website to confirm time and details on the earnings call and the earnings report.

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