Miami, Florida-based Lennar Corporation (LEN) operates as a homebuilder in the United States. With a market cap of $34.2 billion, Lennar operates through Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar Other segments.

The homebuilder has significantly underperformed the broader market over the past year. LEN stock plummeted 22.7% over the past 52 weeks and 3.2% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 16.4% gains over the past year and 9.7% returns on a YTD basis.

Narrowing the focus, Lennar has also underperformed the sector-focused Consumer Discretionary Select Sector SPDR Fund’s (XLY) 25.4% surge over the past 52 weeks and 2.1% uptick in 2025.

Lennar’s stock prices dropped by 4.5% in the trading session following the release of its mixed Q2 results on Jun. 16. Due to the current macro environment, the company’s revenues have remained under pressure. Its overall topline for the quarter dropped 4.4% year-over-year to $8.4 billion, but surpassed the Street’s expectations. Meanwhile, its adjusted EPS dropped by a staggering 43.8% year-over-year to $1.90, missing the consensus estimates by 2.1%.

Although the company has observed a slight growth in new deliveries and orders, the average sales price of homes has recently experienced a significant drop. Because of this, the company’s margins have taken a severe hit. Moreover, Lennar’s backlog at the end of Q2 stood at $6.5 billion, down from $8.2 billion at the end of Q2 2024.

For the full fiscal 2025, ending in November, analysts expect LEN to deliver an adjusted EPS of $9.04, down 34.8% year-over-year. The company has a mixed earnings surprise history. While it surpassed the Street’s bottom-line estimates twice over the past four quarters, it missed the projections on two other occasions.

The stock has a consensus “Hold” rating overall. Of the 19 analysts covering the stock, opinions include four “Strong Buys,” 14 “Holds,” and one “Strong Sell.”

This configuration is significantly less optimistic than two months ago, when the stock had a consensus “Moderate Buy” rating overall, with five “Strong Buy” recommendations on it.

On Jun. 20, Keefe, Bruyette & Woods analyst Jade Rahmani maintained a “Market Perform” rating on LEN and decreased the price target from $128 to $114.

As of writing, LEN stock is trading above its mean price target of $121.50. Meanwhile, the street-high target of $160 represents a 21.3% premium to current price levels.