Lennar Less Than $1 Away From a Breakout Level

by Sam Collins | May 14, 2013 1:34 am

Lennar Corp. (NYSE:LEN[1]) — 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[2], 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.

LEN Chart
Click to Enlarge

Trade of the Day Chart Key[3]

  1. LEN: http://studio-5.financialcontent.com/investplace/quote?Symbol=LEN
  2. Top Stocks to Buy for March: https://investorplace.com/2013/02/top-stocks-to-buy-eght-aig-cimt-cpts-len-wprt/view-all/
  3. [Image]: https://investorplace.com/wp-content/uploads/2011/04/chart-key.gif

Source URL: https://investorplace.com/2013/05/trade-of-the-day-lennar-corp-nyse-len-2/
Short URL: http://invstplc.com/1nD92yM