London, UK, 4 Sep 2021, ZEXPRWIRE – Encouraged by the positive earnings season, investors have been turning bullish and driving up stocks. While there has been some volatility due to inflation fears which pulled down markets a few times in April this year, the market is once again rallying with strength as we approach August month end.
The broker from Btcmarketcap feels that for short term period there could be further upside in the market as liquidity situation increases. But they also underscore the need for building strict stop loss levels as it would be very difficult to time any correction at this point; hence a passive strategy would work best in this case. Experts are advising investors not to go all out but instead play safe by taking selective bets and using trailing stops while carrying forward long positions. In order to protect existing long positions or open new positions one can use the recent big gains to book profits.
Now is a good time to buy fundamentally strong stocks that have built sound chart patterns. The following example charts highlight potential candidates:
That being said, make sure you keep an eye on the market trend page here as things can change quickly in this industry!
Lennar stock is looking bullish after several other homebuilders rallied on strong earnings. Homebuilders could be ready to go another run as they consolidate their gains from a previous rally in the past month or so.
This year has been a strong one for Lennar Corporation. Lennar is up over 40% since the start of 2019 and continues to show progress, even as it finds itself in an industry that’s slowing down. Despite its competitors losing momentum or going out of business entirely, this homebuilder shows no signs of stopping anytime soon and investors should be eager about what 2021 brings them.
The homebuilder stock’s earnings performance is one of the most powerful aspects for investors. Over the past three quarters, its EPS has grown by an average of 51%. This is double what CAN SLIM connoisseurs seek from a company!
Lennar Corp. (LEN), the home builder that reported its Q2 earnings last month, posted encouraging numbers in a quarter where many other companies missed expectations or failed to meet them entirely. First-quarter results showed solid increases: EPS was up 61% year over year and sales were 22% higher than the previous period’s $5 billion; deliveries rose 14%, with revenue from new orders jumping 32%. Deliveries for June reached 14,493 homes – an increase of 822 units compared to May 2018 – while backlog increased 38% as well, now at 24,741 homes valued at $9 billion overall.
Last month Lennar Corporation announced their Q2 earnings report which included promising developments such as strong growth across all measures including: total deliveries, backlog, revenue and EPS. When Lennar Corporation (LEN) reported Q1 earnings earlier this year, shares fell as investors were spooked by slightly lower than expected EPS guidance for the full-year 2019. But the numbers ended up beating expectations in what was a strong quarter for homebuilders.
Lennar Corp. (LEN) raised its outlook for the fiscal year 2021, and said that it still expects to close 62,000 units in 2020-2021 but at a higher price range of $420K on average. The company also stated their gross margin should improve by about 1% from an original estimate due to improving conditions in construction cost during 2019 as well as desirability of homes constructed this year which will have positive impact on revenue generation going forward towards next decade when they expect closing volume between 60k – 65k houses per annum while maintaining 26%-27 % net margins.
“Second quarter gross margin of 26.1% is the highest second-quarter percentage in company history,” Co-CEO Rick Beckwitt said, “450 basis point improvement over last year.”
Now that the pandemic is over, we can see more signs of a slowing housing market. According to new data from Census Bureau’s New Home Sales report for June 2020, sales were at their lowest levels since April when the outbreak first began.
Lumber prices spiked 300% during the pandemic but have plummeted in recent weeks as fears and uncertainty about an H7N9 epidemic continue to dissipate throughout global markets; however there are other indications that support this slowdown narrative: As per census bureau’s newest numbers,new-home sales dropped below pre-pandemic rates last month despite low interest rates (aside from taxes) and stable home price growth across America .
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