Lennar Less Than $1 Away From a Breakout Level

Break from the triple-top at $43.90 provides a trading target of $50

   
Lennar Less Than $1 Away From a Breakout Level

Lennar Corp. (NYSE:LEN) — This homebuilder and financial services provider invests in distressed real estate through its Rialto Investment segment.

LEN was chosen as one of our Top Stocks to Buy for March, when I said, ” Although the company has exposure to the uncertainties of the real estate market, analysts expect it to see a 32% increase in revenues in fiscal year (FY) 2013 following a 33% rise in FY 2012. Earnings improved to $3.11 in FY 2012, up from $0.48 in FY 2011.”

On March 20, LEN reported first quarter earnings of $0.26 per share versus an expected $0.13 per share (Zacks). S&P increased their FY 2013 estimate to $1.83 with an upward revision of FY 2014 pending a continuation of an improvement in the economy.

In March, our trading target was $45, but fundamentals have improved and the stock has flashed three buy signals from our proprietary internal indicator, the Collins-Bollinger Reversal (CBR). A break from the triple-top at $43.90 provides a trading target of $50. Buy LEN on a close over $44.

05 14 13 len 300x199 Lennar Less Than $1 Away From a Breakout Level
Click to Enlarge

chart key 300x84 Lennar Less Than $1 Away From a Breakout Level


Article printed from InvestorPlace Media, http://investorplace.com/2013/05/trade-of-the-day-lennar-corp-nyse-len-2/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.