Earnings Play: Lennar
Jason Lubin September 11, 2020 11:00 PM
How to play Lennar's third quarter earnings release on Monday.
On Monday, after market, Lennar (LEN) is expected to release third quarter EPS of $1.57 compared to $1.59 last year on revenue of approximately $5.5 billion vs. $5.9 billion a year earlier. The company is the largest homebuilder in the U.S. and its current analyst consensus rating is 10 buys, 10 holds and 0 sells, according to Bloomberg.
Technically speaking, on a daily chart, Lennar's stock price has been increasing in a uptrend that began in mid-March. Price has been using its 20-day and 50-day simple moving averages (SMA) as rough support. The RSI is mixed with a bullish bias, as it has been falling in a short-term bearish channel, but appears to be breaking through the upper trendline. The current low interest rate environment in the U.S. favors home purchases and according to the U.S. Census Bureau, New Home Sales have been rising monthly since April. Price will likely rise and break through its record high of 80.00. If price gets above 80.00 it will probably continue advancing and grind towards it first Fibonacci target at about 94.75. On the other hand, if price cannot hold above its 71.25 support level it would be a bearish signal, as price would also likely fall below both of its SMAs. If that occurs then price could continue falling to its second support level at 65.50. If a rebound does not occur at 65.50 then a new downtrend could be forming.
Source: GAIN Capital, TradingView
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.