Lennar Corporation shares have fallen 22.4% year to date, underperforming the Zacks Building Products - Home Builders industry, the broader Zacks Construction sector and the S&P 500 Index. For the first nine months of fiscal 2026, home-sales revenues declined 7% year over year to $21.6 billion as deliveries fell 2% to 58,222 homes from 59,549 homes, and average selling price dropped 5% to $372,000 from $393,000. Homebuilding gross margin contracted to 15.5% from 18% a year ago, while selling, general and administrative expenses rose to 9.4% of home-sales revenues from 8.5%. Management cut its full-year fiscal 2026 delivery target to about 80,000-81,000 homes from 82,000-83,000, and guided fourth-quarter deliveries of 22,000-23,000 homes with an average selling price of $370,000 to $380,000 and gross margin of 15.5-16%. Fiscal 2026 and fiscal 2027 earnings estimates stand at $4.95 and $5.70 per share, respectively, with the fiscal 2026 figure implying a 38.6% year-over-year decline, and the stock carries a Zacks Rank #5 (Strong Sell).
Lennar CorporationLennar cut full-year delivery guidance and reported margin contraction with a Zacks Rank #5 Strong Sell.
DR Horton Inc
Meritage Corporation
PulteGroup Inc