Lennar Stock Alpha and Beta Analysis

LEN-B Stock  USD 154.18  2.83  1.87%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Lennar. It also helps investors analyze the systematic and unsystematic risks associated with investing in Lennar over a specified time horizon. Remember, high Lennar's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Lennar's market risk premium analysis include:
Beta
1.79
Alpha
0.02
Risk
1.85
Sharpe Ratio
0.14
Expected Return
0.27
Please note that although Lennar alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., NYSE Composite index.) So in this particular case, Lennar did 0.02  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Lennar stock's relative risk over its benchmark. Lennar has a beta of 1.79  . As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Lennar will likely underperform. The current year's Enterprise Value Multiple is expected to grow to 7.02, whereas Price Book Value Ratio is forecasted to decline to 1.06.
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
  
Check out Lennar Backtesting, Lennar Valuation, Lennar Correlation, Lennar Hype Analysis, Lennar Volatility, Lennar History and analyze Lennar Performance.
For information on how to trade Lennar Stock refer to our How to Trade Lennar Stock guide.

Lennar Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Lennar market risk premium is the additional return an investor will receive from holding Lennar long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Lennar. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Lennar's performance over market.
α0.02   β1.79

Lennar expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Lennar's Buy-and-hold return. Our buy-and-hold chart shows how Lennar performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Lennar Market Price Analysis

Market price analysis indicators help investors to evaluate how Lennar stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Lennar shares will generate the highest return on investment. By understating and applying Lennar stock market price indicators, traders can identify Lennar position entry and exit signals to maximize returns.

Lennar Return and Market Media

The median price of Lennar for the period between Sat, Dec 30, 2023 and Fri, Mar 29, 2024 is 141.84 with a coefficient of variation of 4.17. The daily time series for the period is distributed with a sample standard deviation of 5.9, arithmetic mean of 141.57, and mean deviation of 4.79. The Stock received a lot of media exposure during the period.
 Price Growth (%)  
       Timeline  
 
Lennar dividend paid on 7th of February 2024
02/07/2024
1
As Myrtle Beach, SC grows, are more new homes opening along Carolina Bays Parkway
02/08/2024
2
Dream Finders Homes Surges 7.0 percent Is This an Indication of Further Gains
02/27/2024
3
Investing in Lennar five years ago would have delivered you a 263 percent gain
03/11/2024
4
Stock market today US futures flatline after SP 500 hits another record high
03/13/2024
5
Stocks making the biggest moves midday Dicks Sporting Goods, Lennar, Robinhood and more
03/14/2024
6
Lennar Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
03/15/2024
7
Should Value Investors Buy Lennar Stock
03/18/2024
8
LENNAR INTRODUCES THE TOWNES AT BAYOU HEIGHTS, A NEW GATED TOWNHOME ENCLAVE IN PINELLAS PARK, FLORIDA
03/20/2024
9
Pothole Heroes Expands to the Carolinas, Names Chris Coberth Regional Director
03/21/2024
10
Lennar buys 19 acres of farmland at a discount
03/25/2024
11
Doma Enters into Agreement to Go Private at Price of 6.29 Per Share in Cash Plans to Merge with an industry leader TRG to Create Attractive Scale Opportunities
03/28/2024

About Lennar Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Lennar or other stocks. Alpha measures the amount that position in Lennar has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2021 2022 2023 2024 (projected)
Price Earnings Ratio5.529.28.288.24
Short Term Coverage Ratios1.432.032.331.79
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Lennar in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Lennar's short interest history, or implied volatility extrapolated from Lennar options trading.

Build Portfolio with Lennar

Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.

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By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
When determining whether Lennar offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Lennar's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Lennar Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Lennar Stock:
Check out Lennar Backtesting, Lennar Valuation, Lennar Correlation, Lennar Hype Analysis, Lennar Volatility, Lennar History and analyze Lennar Performance.
For information on how to trade Lennar Stock refer to our How to Trade Lennar Stock guide.
You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

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When running Lennar's price analysis, check to measure Lennar's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lennar is operating at the current time. Most of Lennar's value examination focuses on studying past and present price action to predict the probability of Lennar's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lennar's price. Additionally, you may evaluate how the addition of Lennar to your portfolios can decrease your overall portfolio volatility.
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Lennar technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Lennar technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Lennar trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...