Lennar’s Rally: One Chart Explaining the Runup

Lennar is a Magnet for Big Money

So, what’s Big Money? Said simply, that’s when a stock presses higher alongside chunky volumes. It’s indicative of institutions betting on the shares.

Markets are forward-looking. Prices often tell the fundamental picture ahead of time. Lennar has many fundamental qualities that are attractive.

Paying attention to how the shares trade, suggests there could be more upside.

The last year tells the story. Each green bar signals big buying volumes as the stock ramped in price:

In the last year, the stock attracted chunky Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out the technical action grabbing my attention:

• Year-to-date outperformance vs. SPDR S&P Homebuilders ETF (+8.59% vs. XHB)

Outperformance is important for leading stocks.

Lennar Fundamental Analysis

Now, let’s dive into fundamentals. LEN has had double-digit sales growth, and the future earnings outlook is solid too. Take a look:

• 1-year sales growth rate (+24.2%)
• 1-year EPS growth estimate (+7.6%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, LEN has been a top-rated stock at MAPsignals for years. That means the stock has had buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this every week.

It’s made the rare Top 20 report numerous times the last year. The blue bars below show when LEN was a top pick:

Tracking unusual volumes reveals the power of the MAPsignals process.

Lennar Price Prediction

The Lennar rally has been in place for months. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in LEN at the time of publication.

Learn more about the MAPsignals process here.

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