Lennar Corporation is a U.S. homebuilder operating primarily under the Lennar brand. Its segments include Homebuilding East, Central, South Central, and West, along with Financial Services, Multifamily, and Lennar Other. The company builds and sells single-family attached and detached homes, buys, develops, and sells residential land, and develops, constructs, and manages multifamily rental properties. It also provides residential mortgage financing, title insurance, and closing services, originates and sells securitization commercial mortgage loans, and engages in fund investment activities. It serves first-time, move-up, active adult, and luxury homebuyers. Founded in 1954, Lennar is based in Miami, Florida.
Berkshire's Bigger Bet vs. Housing Slump and Cost Pressures
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Berkshire keeps buying Lennar Berkshire Hathaway raised its Lennar stake to 11.2%, about 26.6 million shares, buying roughly 2.4 million more in early October. A famous, patient investor adding to its position signals deep-pocketed confidence in Lennar's value, which can support the stock even while results are weak.
The period's biggest positive force is Berkshire's continued accumulation, which directly lifts sentiment and demand for LEN shares.
Costs rise from labor, fuel and tariffs Lennar flagged data-center-driven labor shortages, immigration crackdowns, fuel and tariffs as cost headwinds, with pressure in about 20% of divisions. Higher build costs squeeze margins and profits, and with new orders already down 9% year over year, this weighs on the stock.
This is the period's clearest new fundamental negative: rising input costs that directly threaten Lennar's margins.
Guidance cut and margin contraction confirmed Lennar cut its full-year delivery target to about 80,000-81,000 homes, with nine-month revenue down 7% and gross margin falling to 15.5% from 18%. Shares are down 22.4% year to date. Shrinking deliveries and margins mean lower earnings, pressuring the stock.
It quantifies the earnings deterioration behind the stock's decline and is the core bear case for the period.
New communities and steady dividend offset weak backdrop Lennar opened new communities in Pennsylvania, Alabama and California and kept its $0.50 quarterly dividend, signaling cash returns and a push into active-adult and lifestyle homes. These support future sales and income, but they are small next to the housing slump and cost pressures.
It captures the real counterweight — expansion and capital returns — while noting it is not enough to offset the negatives.
Lennar Prioritizes Volume Over Margin as Fiscal 2026 Deliveries and Margins Decline
Lennar Corporation is deliberately prioritizing housing volume over near-term margin expansion as affordability challenges continue to weigh on the U.S. housing market. For the nine months ended August 2026, Lennar's home-sale revenues declined 7% year over year to $21.6 billion, as deliveries fell 2% to 58,222 and average selling price declined 5% to $372,000, while gross margin contracted to 15.5% from 18% and SG&A rose to 9.4% of revenues from 8.5%. In the third quarter of fiscal 2026, construction costs fell 6% year over year to approximately $80 per square foot and cycle time improved to a record 116 days from 126 days a year ago, though the U.S. 30-year mortgage rate recently climbed to 7.28% in September and September 2026 pending home sales fell 8.5% year over year. Lennar expects fourth-quarter fiscal 2026 deliveries of 22,000-23,000 homes, down from 23,034 a year ago, and a gross margin of 15.5-16%, down from 17%, while its land-light model controls 98% of homesites through third parties. Among peers, PulteGroup reported second-quarter 2026 incentives at 10.4% and gross margin at 25%, down from 27% a year ago but up sequentially, with orders up 6%, while D.R. Horton expects elevated incentives as third-quarter fiscal 2026 closings rose 4% but earnings fell 12%. Lennar shares have declined 12.6% over the past six months and trade at a forward 12-month price-to-earnings ratio of 13.84, with fiscal 2026 and fiscal 2027 earnings estimates at $4.95 and $5.64 per share, respectively, and a Zacks Rank #5 (Strong Sell).
LEN · Demand · Negative Lennar is prioritizing volume over margin as affordability pressures cut deliveries, ASP, and gross margin, with Q4 deliveries and margins guided lower.
DHI · Demand · Negative D.R. Horton expects elevated incentives as fiscal Q3 closings rose 4% but earnings fell 12%, reflecting weak housing demand conditions.
PHM · Demand · Neutral PulteGroup reported Q2 incentives at 10.4% and gross margin down to 25% from 27% but orders up 6%, a mixed demand picture.
Berkshire Raises Lennar Stake Above 11% as Builder Trades Below Book Value
Berkshire Hathaway has lifted its stake in Lennar Corporation above 11% of the company, a position worth roughly $2.2 billion, as the homebuilder trades below its own book value. Lennar traded at around $77 on October 6, up 3.77% on the day and 39.05% lower over twelve months, against a book value of $90.68 a share, or 0.85 times book. The company's balance sheet is mostly land and finished houses carried at what Lennar paid, and a current ratio of 10.13 and debt-to-equity of 28.20% give it room to hold that inventory rather than sell it cheaply. The income statement is why the stock sits where it does: revenue fell 8.70% in the most recent quarter and earnings fell 52.00%, leaving a net margin of 4.09%, while 10.24% of the float is sold short. Lennar is worth $18.38 billion, trades at 15.06 times trailing earnings and 14.72 times forward earnings, and carries $6.12 billion of debt, with enterprise value to EBITDA of 11.48.
LEN · Capital · Positive Berkshire's stake increase above 11% signals confidence in Lennar, which trades below book value amid falling revenue and earnings.
BRK-B · Capital · Positive Berkshire Hathaway raised its stake in Lennar above 11%, a ~$2.2 billion investment.
Google Signs Nuclear Power Deal With Constellation Energy Worth Over $4.3 Billion
Google announced a major long-term power agreement with Constellation Energy, under which it will buy power tied to 890 megawatts of new nuclear capacity alongside a separate 2,700-megawatt supply agreement, supporting more than $4.3 billion in new Constellation investment. Constellation Energy shares jumped more than 6% premarket on the news, while Alphabet rose about 0.5%. Separately, Option Care Health shares surged more than 20% following a Financial Times report that McKesson and private equity firm Clayton Dubilier & Rice are in advanced talks to jointly acquire the infusion services provider in a transaction valued at more than $5 billion; McKesson stock is up 1.5%. Berkshire Hathaway disclosed in a regulatory filing that it purchased about 2.4 million shares of Lennar, sending Lennar up 1.5%. NeoGenomics rose 5% after announcing that current President and COO Warren Stone will take the helm from Tony Cook in January 2027, and reporting preliminary third-quarter total revenue of $209 million, topping the $205.9 million consensus estimate, per FactSet. Advanced Micro Devices rose nearly 2% after Citi raised its price target to $800, citing greater CPU demand driven by Meta's Muse AI agent, while Procter & Gamble rose 1.2% on an Evercore ISI upgrade to outperform and a price target increase to $166 from $161, and Corteva rose nearly 3% after JPMorgan upgraded the stock to overweight from neutral with a $19 price target.
CEG · Demand · Positive Google signed a long-term power agreement with Constellation for 890 MW of new nuclear capacity plus a 2,700 MW supply deal, supporting over $4.3 billion in new Constellation investment.
OPCH · Capital · Positive Option Care Health surged over 20% on an FT report that McKesson and Clayton Dubilier & Rice are in advanced talks to acquire it for over $5 billion.
MCK · Capital · Positive McKesson is in advanced talks to jointly acquire Option Care Health in a deal valued over $5 billion, with its stock up 1.5%.
NEO · Capital · Positive NeoGenomics rose 5% after announcing a CEO succession and preliminary Q3 revenue of $209M topping the $205.9M consensus.
PG · Capital · Positive Procter & Gamble rose 1.2% on an Evercore ISI upgrade to outperform and a price target increase to $166 from $161.
GOOG · Demand · Positive Alphabet's Google signed a major long-term nuclear power purchase agreement with Constellation to supply its operations.
Berkshire Raises Lennar Stake to 11.2%, Buffett Back in World's Top 10 Billionaires
Berkshire Hathaway, under the leadership of Warren Buffett, has continued to increase its stake in Lennar Corporation, a major U.S. homebuilder and real estate developer, to 11.2%, a portfolio value of about 2.1 billion dollars, or roughly 75 billion baht. Documents filed with the U.S. Securities and Exchange Commission state that Berkshire bought 53.6 million dollars of Lennar Class A shares and 329,000 dollars of Class B shares, which carry extra-special voting rights, between Monday and Wednesday, bringing its total holding to 26.6 million shares, up from 5.4%, or 13.4 million shares worth 1.2 billion dollars, at the end of the second quarter. The pace of buying has begun to slow, averaging less than 18 million dollars a day through Wednesday, and no transactions are expected on Thursday. Meanwhile, Morgan Stanley initiated coverage with an Underweight rating and a price target of 65 dollars per share, nearly 19% below the latest close of 79.81 dollars, amid 30-year fixed mortgage rates that have risen for six straight weeks to 7.30%, the highest since late 2023. On the wealth front, Warren Buffett has reclaimed his place as the world's 10th-richest person in Forbes magazine's rankings after overtaking Amancio Ortega, the founder of Inditex, the owner of the Zara brand. Forbes estimates Buffett's net worth at 143 billion dollars, above Ortega's 140 billion dollars, making Buffett the only person in the top 10 not from the technology sector. The Bloomberg Billionaires Index ranks them differently, estimating Ortega's fortune at 125 billion dollars in 15th place, with Jim Walton, a Walmart heir, in 11th place with 134 billion dollars.
LEN · Capital · Neutral Berkshire lifted its stake to 11.2% (positive) but Morgan Stanley initiated Underweight with a $65 target amid 7.30% mortgage rates (negative).
BRK-B · Capital · Positive Berkshire raised its Lennar stake to 11.2% and Buffett reclaimed a top-10 billionaire spot, reflecting the value of its holdings.
MS · Capital · Negative Morgan Stanley initiated coverage of Lennar with an Underweight rating and a $65 price target, ~19% below the latest close.
Lennar and KB Home Flag Rising Labor, Fuel and Tariff Cost Pressures
Lennar Corporation and KB Home both flagged rising cost pressures during their latest earnings calls, pointing to data-center-driven labor shortages, tariffs and inflation as headwinds for the housing market. On Lennar's third-quarter call in September, chairman, president and CEO Stuart Miller said labor availability is definitely one of geography, citing data centers, sporadic immigration crackdowns and tariffs, while executive vice president for homebuilding David Collins said roughly 20% of the company's divisions are seeing greater pressure than the vast majority. Miller added that the shortage shows up unevenly by trade, with landscaping an example, and said the resale market is becoming more and more of a competition, though chief operating officer Jim Parker noted increased resale activity can also unlock more move-up buyers. KB Home President and CEO Rob McGibney said his company has built direct fuel surcharges into trade contracts so they can be extracted immediately if fuel prices pull back, and expects slightly higher sequential direct costs for fourth-quarter deliveries after experiencing increasing cost pressure from fuel, general inflation and tariffs. Lennar's third-quarter revenue of $8.05 billion missed analyst estimates with new orders down 9% year-over-year, while KB Home posted a third-quarter beat with $1.297 billion in revenue and $1.05 per share. Lennar's shares were down 0.72% to $81.00 in premarket trading on Thursday, while KB Home stock declined about 2.09% to $45.50.
KBH · Supply · Negative KB Home expects higher sequential direct costs from fuel, inflation and tariffs, building fuel surcharges into trade contracts.
LEN · Supply · Negative Lennar flagged data-center-driven labor shortages, immigration crackdowns and tariffs as cost headwinds, with new orders down 9% YoY.
Lennar Declares US$0.50 Quarterly Dividend and Opens Venue at Leaf Creek Active Adult Community
Lennar Corporation declared a quarterly cash dividend of US$0.50 per share for both Class A and Class B stock, payable on October 22, 2026. Earlier in 2026 the company introduced Venue at Leaf Creek, an active adult community in Douglassville, Pennsylvania, featuring more than 300 homes and resort-style amenities. The launch reflects Lennar's push into lifestyle-oriented, amenity-rich communities aimed at active adult buyers in a scenic yet well-connected location. The maintained dividend signals continued capital returns even as earnings and margins have softened this year, while the company's narrative projects $40.8 billion in revenue and $2.7 billion in earnings by 2029, requiring 8.5% yearly revenue growth and about a $1.4 billion earnings increase from $1.3 billion today. Some of the most optimistic analysts expected Lennar's revenue to reach about US$40.6 billion and earnings US$2.5 billion.
LEN · Capital · Positive Lennar declared a maintained US$0.50 quarterly dividend, signaling continued capital returns despite softer earnings and margins.
LEN · Demand · Positive Lennar launched Venue at Leaf Creek, a 300+ home active adult community, expanding its lifestyle-oriented product offering to end buyers.
Berkshire Buys Taylor Morrison for $6.8 Billion, Merges It With Clayton Properties
Berkshire Hathaway acquired Taylor Morrison for about $6.8 billion in equity value in July 2026 and combined it with Clayton Properties Group, its existing portfolio of site-built homebuilders. The deal substantially expands Berkshire's presence in conventional homebuilding while complementing Clayton Homes' exposure to manufactured and more affordable housing, part of a broader push to build a scaled, vertically integrated U.S. housing platform rather than a collection of standalone investments. Berkshire also owns businesses spanning housing finance, building products and insurance, and its public-equity portfolio includes homebuilders such as Lennar, where it recently increased its stake. The U.S. housing market remains structurally undersupplied, with land constraints, labor shortages, elevated construction costs and financing challenges limiting new supply, conditions that may favor well-capitalized operators with scale and access to internal funding. Shares of BRK.B have lost 0.1% year to date, and the stock trades at a price-to-book value ratio of 1.44 against an industry average of 1.41.
Homebuilding Stocks Slide as Mortgage Rates Hit 7.5%
Homebuilding and home improvement stocks are heading for a bruising September as mortgage rates climb back to 7.5%. The S&P 500 Homebuilding Index has fallen 3.2% so far this month, pressured by the rapid run-up in mortgage rates and slumping revenues at Lennar and KB Home. Retailers are faring worse: Home Depot shares have slid 11% this month and Lowe's has dropped 8.5% as building activity slows and renovators shift to smaller, cheaper products. Mortgage rates have surged more than half a point in two weeks, and on Monday the average rate on a 30-year fixed-rate loan touched 7.5% for the first time since April of 2024. After briefly falling below 6% early this year, rates were pushed higher by the war in Iran and accompanying inflation, dampening sales and keeping homebuyers sidelined.
HD · Demand · Negative Home Depot shares slid 11% this month as slowing building activity and renovators shifting to smaller, cheaper products hit demand.
LOW · Demand · Negative Lowe's dropped 8.5% this month as slowing building activity and a shift to smaller, cheaper renovation products weigh on demand.
KBH · Demand · Negative KB Home is cited for slumping revenues amid the mortgage-rate surge that is keeping homebuyers sidelined.
LEN · Demand · Negative Lennar is cited for slumping revenues as mortgage rates climbing to 7.5% dampen home sales.
Lennar Opens Three New Communities in Pennsylvania, Alabama and California
Lennar has opened three new residential communities across Pennsylvania, Alabama and California. In Hatfield, Pennsylvania, the builder launched Venue at Leaf Creek, an active adult community with amenities tailored to buyers aged 55 and over. Near Huntsville, Alabama, Lennar introduced Cherokee Bend, offering new single family homes across multiple floor plans. In San Juan Capistrano, California, the company launched The Farm, a residential project adding more new construction options in the state. The three launches target different price points and life stages, fitting Lennar's asset-light, volume-focused model of keeping sales flowing across a wide mix of communities even when conditions are tougher.
Aging Population › Senior Housing & Healthcare REITs Competition
LEN · Demand · Positive Lennar opened three new residential communities across Pennsylvania, Alabama and California, expanding its home offerings to different price points and life stages.
Lennar Profit Halves to $283 Million as High Mortgage Rates Crush Demand
Lennar Corporation reported third-quarter profit of $283 million, half the $591 million it earned a year earlier, as high mortgage rates weighed on demand for its homes. Revenue fell 8% annually to $8 billion, while home sales gross margin slipped to 15.8% from 17.5% in the year-ago quarter and new orders dropped 9% annually to 20,879. The results followed the Federal Reserve's September 16th rate hike, which Jim Cramer said would further crush the homebuilding industry, noting Barclays cut its price target on Lennar to 70 from 79 with an Underweight rating. Offsetting the weakness, Lennar's core construction costs fell 6% to $80 per square foot and its cycle time dropped to 116, a new industry low. Hedge fund interest was little changed, with 65 funds holding a stake in Lennar in the second quarter, according to Insider Monkey's data.
LEN · Capital · Negative Q3 profit halved to $283M, revenue fell 8%, gross margin slipped to 15.8%, and new orders dropped 9% amid high mortgage rates.
LEN · Demand · Negative High mortgage rates crushed demand for Lennar's homes, halving profit and dropping new orders 9%.
LEN · Supply · Positive Core construction costs fell 6% to $80 per square foot and cycle time dropped to a new industry low of 116.
BARC.LSE · Capital · Negative Barclays cut its price target on Lennar to 70 from 79 with an Underweight rating.
Berkshire Buys $212 Million of Lennar Shares After Weak Quarter
Berkshire Hathaway bought roughly $212.4 million worth of Lennar shares across three trading days in September, pushing its total position in the homebuilder to about $1.4 billion. The purchases took place between Sept. 17 and Sept. 21, with Berkshire picking up 2.74 million shares across both Class A and Class B stock, and LEN shares rose 2.1% on Monday and gained another 1.2% in overnight trading after the news broke. The buying followed Lennar's Sept. 16 third-quarter report, in which net earnings dropped to $284 million from $591 million a year earlier, revenue fell 8.6% to $8.05 billion, and adjusted earnings per share of $1.23 missed the $1.28 consensus, while new home orders declined 9% to 20,879 and gross margin fell to 15.8% from 17.5%. Management cut its full-year 2026 delivery outlook to 80,000 to 81,000 homes from 82,000 to 83,000 previously, prompting Barclays to cut its price target to $70 from $79 and Royal Bank of Canada to move its target to $69. The Lennar stake is part of a broader housing push under new CEO Greg Abel, following Berkshire's May agreement to acquire Taylor Morrison for $72.50 per share in cash, a deal that closed in July at about $6.8 billion in equity value and $8.5 billion in enterprise value, and adding to its existing positions in D.R. Horton and Clayton Homes.
Berkshire Hathaway Raises Stake in Lennar, Shares Jump 4.44%
Berkshire Hathaway has increased its stake in homebuilder Lennar, sending the company's shares 4.44% higher to $81.55 in morning trading on Tuesday. An SEC filing showed that Berkshire, already a 10% owner of Lennar, acquired roughly 2.74 million class A and B shares in multiple transactions at prices ranging from $74.49 to $79.79. Following the purchases, Berkshire holds approximately 23.72 million class A shares and 528,217 class B shares, both of indirect ownership. The move comes after Warren Buffett, who led Berkshire Hathaway for 61 years, stepped down as chairman.
Jim Cramer Warns KB Home Could Post Weak Quarter Like Lennar
Jim Cramer said on Mad Money that KB Home is likely to report another weak quarter when it releases results after the market closes on September 22, warning that the home builder faces the same pressures Lennar has already disclosed. Lennar reported approximately $8 billion of revenue in its fiscal third quarter, but new orders fell 9% year over year to 20,879 homes, deliveries declined 3% to 20,840, the average selling price fell 3% to $372,000, and home-sale gross margin dropped to 15.8% from 17.5% a year earlier. CEO Stuart Miller said mortgage rates reached approximately 6.8% at quarter-end and that rates and affordability have driven more consumers to slow their purchase decision, prompting Lennar to cut its full-year 2026 delivery target to approximately 80,000 to 81,000 homes from 82,000 to 83,000 previously. KB Home's fiscal second-quarter results already showed revenue down 27% year over year to $1.11 billion, diluted EPS of $0.43 versus $1.50, deliveries down 23% to 2,395 homes, net orders down 4% to 3,317, and backlog value down 7% to $2.14 billion, and management guided fiscal third-quarter deliveries to 2,600 to 2,800 homes with housing gross margin of 16% to 16.6%. Hedge fund holders of Lennar slipped to 65 in the second quarter from 66 in the first, while KB Home holders fell to 34 from 37, and short interest stood at approximately 8.4% of Lennar's public float and approximately 12.9% of KB Home's.
KBH · Demand · Negative Cramer warns KB Home faces the same weak housing demand and affordability pressures that drove Lennar's orders down 9% and delivery-target cut.
LEN · Demand · Negative Lennar's new orders fell 9% YoY, deliveries declined 3%, average selling price dropped 3%, gross margin fell to 15.8%, and it cut its 2026 delivery target on weak affordability.
Lennar Warns of Slowing Home Sales as Orders Fall 9%
Lennar is warning that its plan to rebuild profit depends on a home sales pace that its own numbers show is slipping. New orders in its third quarter of 2026 fell about 9% from a year earlier and missed the company's own range, while revenue fell 13.3% year over year, the steepest drop in four quarters. For its fourth quarter, Lennar guides new orders to 19,500 to 20,500, below the 20,879 it booked in the third quarter, and deliveries to 22,000 to 23,000. Gross margin was 15.8% in the third quarter, up from 15.6% the quarter before, and management expects fourth-quarter gross margin to stay about where the third quarter landed. The CEO said the 30-year fixed mortgage rate is now about 7%, up from between 6.4% and 6.5% in June, and that in many of Lennar's markets almost half of visitors cannot immediately qualify for a loan. Lennar stock has lost about 41% over the past year and trades at about 0.6 times sales, roughly 3% of the way up its own 10-year range, with homebuilding debt at 16.6% of total capital.
Lennar reported a softer third quarter, with profit and revenue missing expectations as high mortgage rates and weaker confidence pressured housing demand and triggered another cut to full-year delivery guidance. The earnings disappointment and guidance cut have hit sentiment hard, with the share price down about 12% over the past month and roughly 27% year to date, while the 1 year total shareholder return has fallen about 39%. The most followed narrative pegs fair value at about $83.69 a share, compared with the last close of $76.43, implying a modest discount that investors must weigh against the current housing backdrop. Lennar trades on a P/E of 14.3x, higher than its Consumer Durables peers at 13x and below the US market at 18.2x, yet well below its fair ratio of 23.5x. The company's transition to an asset-light, land-light model with just-in-time delivery is expected to generate more predictable volume and growth, though its exposure to rate-sensitive entry-level buyers and the need for heavier incentives if mortgage costs stay elevated could quickly weaken the 9% undervalued case.
Generac Soars 33% on Amazon Data Center Generator Deal
Generac struck a deal with Amazon to supply backup power generators for its data centers, sending the generator maker's shares up 33% in premarket trading. Initial deliveries are expected to total $2.4 billion between 2027 and 2028, and Generac also granted Amazon the right to buy up to $340 million worth of its stock; Amazon shares rose 1.3%. Lennar fell 1.2% after reporting third-quarter earnings of $1.19 per share, short of the $1.28 expected by analysts polled by FactSet and nearly half of what it saw this time last year, with revenue of $8.05 billion versus the $8.23 billion consensus estimate. Fluence Energy tumbled 22% after cutting its full-year guidance to $2.4 billion in revenue for 2026 from a prior range of $2.9 billion to $3.1 billion, and now anticipates a $200 million loss before interest, taxes, depreciation and amortization versus its previous guidance range of a $30 million loss to $10 million EBITDA. Nike rose 1.5% after announcing the appointment of Alexandre Arnault, Deputy CEO of LVMH's Moët Hennessy, to its board, and Arm Holdings gained roughly 4% after CEO Rene Haas told CNBC's Jim Cramer he is increasingly confident the company can meet demand for its new data center chip.
Fed Expected to Hike Rates 25 Basis Points as Lennar and Wayfair Face Key Week
Futures traders are pricing roughly a 93% probability that the Federal Open Market Committee will raise the federal funds rate by 25 basis points to a target range of 3.75% to 4.00% at its Wednesday meeting, which would be the first rate hike since July 2023. The repricing has been rapid, moving from 48% a month ago to 59% a week ago and 93% today, after two inflation reports showed prices moving away from the Fed's 2% target, with PCE running at 3.7% over twelve months and 4.1% annualized over six. Chair Kevin Warsh has called the inflation figures concerning, and Barclays now expects two more hikes this year, in September and December. The decision carries an unprecedented wrinkle: the FOMC has never outvoted a sitting chair on a monetary policy decision, and Warsh was appointed by a president who has been vocal about wanting lower rates. Lennar reports fiscal third-quarter results Wednesday after the close, with management guiding to earnings of $1.20 to $1.40 per share on 20,500 to 21,500 deliveries, an average sales price of $375,000 to $380,000, and gross margin near 16%, while Wayfair carries a Zacks Rank #1 and sits at the intersection of Wednesday's retail sales print and Thursday's housing data.
LEN · Monetary · Negative Lennar reports Q3 results in a week dominated by an expected Fed rate hike to 3.75%-4.00%, which pressures housing demand and mortgage rates.
W · Monetary · Neutral Wayfair sits at the intersection of Wednesday's retail sales print and Thursday's housing data amid an expected Fed rate hike, with no company-specific development stated.
Lennar Set to Report Q3 Fiscal 2026 Results on Sept. 16
Lennar Corporation is set to report its third-quarter fiscal 2026 results on Sept. 16, after the closing bell, with the Zacks Consensus Estimate for earnings per share having moved down to $1.29 from $1.31 over the past seven days, a decline of 35.5% from the $2.00 per share reported a year earlier. The consensus mark for total revenues stands at $8.33 billion, down 5.4% from the year-ago figure of $8.81 billion. For the quarter, Lennar expects home deliveries between 20,500 and 21,500 units at an average selling price of $375,000 to $380,000, compared with 21,584 homes sold a year ago at an ASP of $383,000, and it expects home sales gross margin of approximately 16%, down from 17.5%, with EPS in the range of $1.20 to $1.40. New home orders are expected between 21,000 and 22,000 units, down from 23,004 units a year ago, while SG&A expenses as a percentage of home sales are projected at 8.8% to 9%, up from 8.2%. The company carries a Zacks Rank #4 (Sell) and an Earnings ESP of -0.78%, so the model does not conclusively predict an earnings beat.
LEN · Capital · Negative Lennar's Q3 FY2026 EPS estimate cut to $1.29 from $1.31 and down 35.5% y/y, with revenue, deliveries, orders and gross margin all expected lower
Apple Unveils $1,999 Foldable iPhone Duo, Shares Jump 3.6%
Apple Inc. unveiled its $1,999 foldable iPhone Duo, sending its shares up 3.6% on the company's most significant iPhone design overhaul in years. AT&T Inc. shares rose 1.6% after CEO John Stankey questioned the new device, calling the technology "not new." Lennar Corporation shares fell 3.5% as mortgage rates moved above 7%, intensifying pressure on housing stocks. Newmont Corporation shares declined 2% as materials emerged as the biggest losing sector of the day.
AAPL · Technology · Positive Apple unveiled its $1,999 foldable iPhone Duo, its most significant iPhone design overhaul in years.
LEN · Monetary · Negative Lennar fell as mortgage rates moved above 7%, intensifying pressure on housing stocks.
T · · Neutral AT&T rose 1.6% after CEO Stankey questioned the foldable device, calling the technology 'not new' — a passing comment with no clear driver.
NEM · · Negative Newmont declined 2% as materials emerged as the biggest losing sector of the day, with no company-specific cause given.
Lennar Cut to Strong Sell as Q2 Revenue Misses and Guidance Falls
Lennar Corporation has been rated a Zacks Rank #5 (Strong Sell) as the homebuilder confronts the worst housing affordability environment in a generation. In its second quarter, Lennar delivered 20,519 homes and generated revenue of $7.9 billion, short of the roughly $8 billion consensus and down 5.2% year over year, with net margin at just 4.93% and shares falling about 5% on the news. Management cut full-year delivery guidance to 82,000 to 83,000 homes, citing what CFO Diane Bessette described as current pressures on interest rates and continued macro uncertainty, and guided fiscal third-quarter earnings to $1.20 to $1.40 per share on 20,500 to 21,500 deliveries with an average sales price of $375,000 to $380,000 and gross margin near 16%. The Zacks Consensus Estimate sits at $1.30 per share, a 35% plunge versus the year-ago period, while management flagged expected losses of roughly $15 million in Multifamily, $20 million in Lennar Other, and $15 million across homebuilding joint ventures and land sales. Shares recently traded near $78, roughly 44% below their 52-week high, with JPMorgan lowering its objective to $77 with an Underweight rating and Keefe Bruyette maintaining an Underperform rating, and the stock sits in the Zacks Building Products – Home Builders industry group, which ranks in the bottom 21% out of approximately 250 Zacks Ranked Industries.
LEN · Capital · Negative Lennar posted Q2 revenue of $7.9B missing consensus, net margin of 4.93%, cut full-year delivery guidance, and was rated Zacks Rank #5 Strong Sell.
Berkshire Hathaway Bets Big on Housing with Three New Moves
Berkshire Hathaway has made three significant moves that signal a major bet on the U.S. housing market, according to a report from The Motley Fool. In the second quarter, the company acquired homebuilder Taylor Morrison for $8.5 billion, increased its stake in Lennar by about 30%, and bought shares of D.R. Horton. These investments come on top of Berkshire's existing housing exposure, including Clayton Homes and Berkshire Hathaway Home Services. The moves suggest CEO Greg Abel is positioning for a housing recovery, despite the market being described as "frozen" by Home Depot's CEO. With a massive housing shortage and pent-up demand, the bet could pay off if interest rates decline.
Berkshire Hathaway's Greg Abel Spent $23.5 Billion on Nine Stocks
Berkshire Hathaway CEO Greg Abel deployed roughly $23.5 billion into nine publicly traded companies last quarter, marking the conglomerate's first quarter as a net buyer of stocks since 2022. The largest investment was Alphabet, with a $10 billion private placement in June plus an additional $5 billion to $7 billion in open-market purchases, making it Berkshire's third-largest marketable equity holding. Other U.S. additions included Macy's, Delta Airlines, Lennar, New York Times, and a new position in D.R. Horton, while earlier disclosures revealed increased stakes in Japanese trading houses Mitsubishi, Marubeni, and Sumitomo. The article highlights Alphabet as the best of the bunch, citing its $514 billion contracted revenue backlog, expanding cloud operating margin to 35.6%, and a forward earnings multiple of 16.5 times.
GOOG · Demand · Positive Berkshire's $10B private placement and additional purchases make Alphabet its third-largest holding, highlighting its strong backlog and cloud growth.
8002.JP · Capital · Positive Berkshire increased its stake in Marubeni.
8053.JP · Capital · Positive Berkshire increased its stake in Sumitomo.
8058.JP · Capital · Positive Berkshire increased its stake in Mitsubishi.
DAL · Demand · Positive Berkshire increased its stake in Delta, signaling confidence in the airline's prospects.
DHI · Demand · Positive Berkshire initiated a new position in D.R. Horton, indicating a positive view on homebuilder demand.
Berkshire Hathaway Buys D.R. Horton Stake, Boosts Lennar Position
Warren Buffett's Berkshire Hathaway, now run by Greg Abel, revealed in its latest 13F filing that it bought a new stake in D.R. Horton worth about $580,000 and increased its stake in Lennar by 30% in the second quarter, lifting that position to about $1.2 billion. The housing market has been under pressure from higher mortgage rates, but J.P. Morgan Global Research expects home prices to remain flat in 2026 and rise 3% in 2027, while Capital Economics forecasts a 2.5% rebound in 2027 and a 4% gain in 2028. D.R. Horton's gross margin beat guidance at 20.7% in its most recent quarter, but the company cut its full-year revenue guidance and its stock is down 10% over the past year. Lennar's stock is down about 34% over the past year, though its fiscal Q2 results showed incentives on deliveries falling for the first time in three years, and construction costs per square foot dropped 7% year over year to $81.
Berkshire Hathaway boosts Alphabet stake 83% in second quarter
Berkshire Hathaway significantly increased its Alphabet stake in the second quarter of 2026, raising its holdings by 83% to about 106 million shares. The position was worth nearly $38 billion at the end of June, making Alphabet the third-largest holding in Berkshire's U.S. stock portfolio, behind Apple and American Express. Berkshire also increased its stake in Delta Air Lines by 44% during the quarter, taking that position to about $5.4 billion as of June 30. The company initiated a new position in D.R. Horton and significantly increased its holdings in Lennar and Macy's, while roughly halving its stakes in Capital One and Nucor and trimming Bank of America and Kroger. Berkshire also repurchased $4.5 billion of its own shares, marking its largest quarterly buyback since 2021.
NVR Misses Q2 Estimates While Installed Building Products Leads Home Builders
NVR reported second-quarter revenues of $2.33 billion, down 10.5% year over year and 3.9% below analyst expectations, making it the weakest performer among the nine home builders tracked. Installed Building Products delivered the biggest beat, with revenues of $777.8 million, up 2.3% year over year and 4.4% above estimates. Lennar's revenues fell 5.2% to $7.94 billion, missing estimates by 2.4%, while LGI Homes grew revenues 3.7% to $501.5 million, beating by 2.9%. D.R. Horton posted flat revenues of $9.23 billion, in line with expectations, but issued full-year revenue guidance that significantly missed analyst forecasts.
Lennar shares drop 3.53%, underperforming broader market
Lennar shares fell 3.53% to $84.56 in the latest close, a steeper decline than the S&P 500's daily loss of 1.52%. The Dow dropped 2.19% and the Nasdaq decreased 1.74%. Over the past month, the homebuilder's stock has depreciated 3.14%, outperforming the Construction sector's loss of 8.26% but lagging the S&P 500's gain of 1.92%. Lennar is expected to report earnings per share of $1.31, a 34.5% decline from the year-ago quarter, on projected net sales of $8.33 billion, down 5.42%. The Zacks Consensus Estimate for the full year projects earnings of $5.46 per share and revenue of $32.27 billion, representing declines of 32.26% and 5.6%, respectively. Analyst estimates have moved lower, with the consensus EPS projection down 1.22% over the past 30 days, and Lennar currently holds a Zacks Rank of 5, or Strong Sell. The stock trades at a forward P/E of 16.06, a premium to the industry average of 14.65, while its PEG ratio stands at 2.94, matching the Building Products - Home Builders industry average.
LEN · Capital · Negative Analyst estimates have been revised down, with consensus EPS projection falling 1.22% over the past 30 days, and Lennar holds a Zacks Rank of 5 (Strong Sell).
D.R. Horton Beats Earnings but Cuts Full-Year Outlook as Buyers Hesitate
D.R. Horton reported fiscal third-quarter 2026 earnings that topped Wall Street estimates but lowered its full-year sales and home-closing guidance amid affordability pressures and cautious consumer sentiment. Net income fell 12% year over year to $904.9 million, with earnings of $3.20 per share beating the analyst consensus of $3.06, while revenue rose to $9.23 billion, exceeding expectations of $9.18 billion. The company, America's largest homebuilder by volume, reduced its fiscal 2026 revenue outlook to a range of $32.5 billion to $33.0 billion from a prior forecast of $33.5 billion to $34.5 billion, and cut its home-closing forecast to 83,800 to 84,300 homes from 86,000 to 87,500 homes. Executive Chairman David Auld cited affordability challenges and cautious consumer sentiment as ongoing pressures on new-home demand, with elevated sales incentives expected to persist through the fourth quarter. The cancellation rate increased to 20% from 17% in the prior-year quarter, and the homebuilding pretax margin narrowed to 12.3%.
DHI · Demand · Negative D.R. Horton cut full-year guidance due to affordability pressures and cautious consumer sentiment, with cancellation rate rising to 20%.
LEN · Demand · Neutral Lennar is a peer homebuilder; the article's demand headwinds likely affect the sector, but no specific mention of Lennar.
PHM · Demand · Neutral PulteGroup is a peer homebuilder; the article's demand headwinds likely affect the sector, but no specific mention of PulteGroup.
D.R. Horton set to report Q2 earnings with flat revenue expected
D.R. Horton will announce its second-quarter earnings this Tuesday before the market opens. Analysts expect revenue to be roughly flat year over year, an improvement from the 7.4% decline in the same quarter last year. The company missed revenue estimates last quarter, reporting $7.56 billion, down 2.3% from a year earlier, though full-year guidance slightly topped expectations. Peers KB Home and Lennar have already reported mixed results, with KB Home beating estimates despite a 27.3% revenue drop and Lennar missing with a 5.2% decline. D.R. Horton shares are down 4.5% over the past month, trading at $149.00, while the average analyst price target stands at $168.
Seeking Alpha flags 39 large-cap US stocks with Sell or Strong Sell ratings ahead of Q2 earnings
As second-quarter earnings season begins, Seeking Alpha's Quant Rating system identifies 39 large-cap US stocks carrying Sell or Strong Sell ratings, reflecting weaker scores across valuation, growth, profitability, momentum, and earnings estimate revisions. Seven of these companies hold the lowest Strong Sell designation with Quant Ratings below 1.50: Crown Castle, SBA Communications, Honeywell, Strategy, Zoetis, Erie Indemnity, and Tractor Supply. The remaining 32 stocks are rated Sell, including widely followed names such as Coinbase Global, Blackstone, S&P Global, Domino's Pizza, Lennar, Clorox, and Fidelity National Information Services. While some of these companies have delivered positive share-price returns this year, their Quant Ratings suggest investors should watch for potential downside risks as quarterly results and guidance are released.
CCI · Capital · Negative Quant Rating system assigns Strong Sell rating (below 1.50) indicating weak scores across valuation, growth, profitability, momentum, and earnings revisions.
CLX · Capital · Negative Quant Rating system assigns Sell rating, suggesting downside risk ahead of Q2 earnings.
COIN · Capital · Negative Quant Rating system assigns Sell rating, indicating potential downside risk as earnings approach.
DPZ · Capital · Negative Quant Rating system assigns Sell rating, suggesting weaker scores and downside risk.
ERIE · Capital · Negative Quant Rating system assigns Strong Sell rating (below 1.50) indicating weak scores across multiple factors.
HON · Capital · Negative Honeywell is one of seven stocks with the lowest Strong Sell rating (Quant Rating below 1.50), signaling poor scores across valuation, growth, and momentum.
Lennar's urban townhome push tests its asset-light model
Lennar's new townhome and condominium communities in Lancaster, Pennsylvania and Carson, California highlight its push into walkable urban neighborhoods, but the launches do not materially shift near-term risks around mortgage rates, affordability or construction costs. The 351-home Manhattan Square project in Carson may serve as a test of the company's asset-light, just-in-time model and its ability to protect earnings in tighter affordability conditions. Lennar's narrative projects $39.8 billion revenue and $1.7 billion earnings by 2029, requiring 6.8% yearly revenue growth and a $0.1 billion earnings increase from $1.6 billion today. Some analysts already assumed Lennar could reach about $41.5 billion in revenue and $2.3 billion in earnings by 2029, but ongoing sales incentives could keep pressuring margins.
Mortgage Rates Rise to 6.49%, Pressuring Homebuilder Stocks
The 30-year fixed mortgage rate rose to 6.49% this week, according to Freddie Mac, up from below 6% in February. The increase follows a jump in the 10-year Treasury yield, driven by geopolitical tensions and inflation concerns. Home prices hit a record median of $440,600 in June, further straining affordability. Major homebuilder stocks including Lennar, D.R. Horton, PulteGroup, and NVR have all declined over the past week. Goldman Sachs estimates a shortage of 3 million to 4 million homes, and while new legislation aims to ease land-use restrictions, relief is unlikely until mortgage rates fall.
2 Value Stocks with Exciting Potential and 1 We Brush Off
StockStory highlights two value stocks with compelling risk-reward profiles and one to avoid. Lennar is flagged as a value trap due to a 9.2% average decline in backlog, an 8.9% annual drop in earnings per share over five years, and shrinking returns on capital, trading at a forward P/E of 13.3x. CNX Resources stands out with a 68% gross margin, a 1.9 percentage point EBITDA margin improvement over five years, and strong free cash flow, trading at a forward P/E of 12.1x. California Resources is favored for its 17.3% annual revenue growth over five years, 57.2% gross margin, and 12.9% free cash flow margin, trading at a forward P/E of 7.7x.
UBS, JPMorgan Lower Lennar Price Targets on Softer Housing Demand
UBS and JPMorgan have lowered their price targets on Lennar Corporation following the homebuilder's second-quarter earnings report. UBS cut its target to $94 from $107 while maintaining a Neutral rating, and JPMorgan reduced its target to $77 from $80 with an Underweight rating, citing softer housing demand and revised guidance. Lennar delivered 20,519 homes in the quarter, with new orders reaching 21,749 homes, and gross margin improved sequentially to 15.6%. The company also noted a decline in sales incentives to 12.9% from 14.1% in the prior quarter, which Executive Chairman Stuart Miller called a potentially sustainable trend. Additionally, Lennar announced management changes, promoting Jim Parker to Chief Operating Officer and David Grove to Executive Vice President for Homebuilding.
RTX, Rithm Property, Ingles Markets, Lennar, and Marvell declare dividends
Several companies announced dividend declarations. RTX declared a dividend of 73 cents per share, payable September 3, 2026 to shareholders of record August 14, 2026. Rithm Property Trust declared a second quarter cash dividend of $0.36 per share of common stock, payable July 31, 2026 to stockholders of record July 7, 2026. Ingles Markets declared a cash dividend of $0.165 per share on Class A Common Stock and $0.15 per share on Class B Common Stock, payable July 16, 2026 to shareholders of record July 9, 2026. Lennar declared a quarterly cash dividend of $0.50 per share for both Class A and Class B common stock, payable July 24, 2026 to holders of record July 10, 2026. Marvell Technology announced a quarterly dividend of $0.06 per share of common stock, payable July 30, 2026 to stockholders of record July 10, 2026.
StockStory flags Lennar as risky, PTC and AbbVie as promising S&P 500 stocks
StockStory identifies Lennar as a risky S&P 500 stock to sell, while naming PTC and AbbVie as promising stocks to watch. Lennar faces declining demand with a 9.2% average backlog drop over two years and an 8.9% annual earnings per share decline over five years, despite revenue growth. PTC shows strength with 21% average billings growth, an 84.7% gross margin, and a 38.7% operating margin. AbbVie benefits from a $62.82 billion revenue base, strong free cash flow, and a 17.5% return on invested capital.
Antipodes Global Value Strategy Divested Lennar Amid Entrenched Sales Incentives and Margin Decline
Antipodes Global Value Strategy stated in its first-quarter 2026 investor letter that it divested Lennar Corporation. Gross margins on home sales fell to 15.2% in the first quarter of fiscal 2026, down from 18.7% a year earlier. Sales incentives of approximately 14% of revenue, compared to a historical 4% to 6%, are becoming entrenched rather than normalizing. Deliveries, average prices, and new order guidance are all tracking below expectations. The strategy noted that while the structural US housing undersupply story is real, the bridge to earnings recovery is longer and more painful than originally anticipated.
LEN · Capital · Negative Gross margins fell from 18.7% to 15.2%, sales incentives are entrenched at 14% of revenue, and deliveries, prices, and new orders are below expectations.
Lennar Gets Lift From Housing Bill as Millrose Spin Off Nears
Congress has passed a wide housing affordability bill that limits institutional bulk home purchases and promotes faster residential construction, a development that could support Lennar's core homebuilding business. The company is also moving ahead with a Millrose Properties spin off, reflecting a shift toward a more land light operating model. Lennar's stock currently trades at $93.52, up 4.2% over the past week and month, but down 10.3% year to date and 13.6% over the past year. The combination of the new housing bill and the upcoming spin off gives investors fresh angles to assess the homebuilder, as the policy changes directly touch on key drivers for large builders while the land light model alters how Lennar may balance growth, risk and capital needs.
LEN · Regulation · Positive Congress passed a housing affordability bill that limits institutional bulk purchases and promotes faster construction, supporting Lennar's core homebuilding business.
LEN · Capital · Neutral The upcoming Millrose spin-off shifts Lennar to a land-light model, altering growth, risk, and capital needs; net impact unclear.
MRP · Capital · Neutral Millrose is being spun off from Lennar, but the article does not detail how this affects Millrose's own prospects.
Lennar vs. NVR: Which Homebuilder Stock Is a Better Buy in 2026?
Lennar and NVR present contrasting investment cases for 2026, with NVR's land-light model offering superior margin resilience and downside protection. Lennar, a diversified builder with a national footprint and integrated financial services, reported fiscal 2025 revenue of nearly $32.7 billion and net income close to $1.6 billion, but its shift toward a land-light strategy depends heavily on its former subsidiary Millrose Properties. NVR generated approximately $9.6 billion in revenue and $1.4 billion in net income, achieving a net margin of roughly 13% compared to Lennar's 5%, while returning significant capital to shareholders. Valuation metrics show Lennar trading at a forward P/E of 16.66x and a price-to-sales ratio of 0.7x, versus NVR's 18.8x forward P/E and 2.1x price-to-sales. The analysis concludes that NVR's disciplined approach, proven through multiple housing cycles, makes it the preferred long-term hold despite Lennar's potential as a recovery play if interest rates decline.
LEN · Capital · Neutral Article compares Lennar's financials and valuation, noting lower margins and potential as a recovery play if rates decline.
NVR · Capital · Positive Article highlights NVR's superior margins, disciplined land-light model, and strong capital returns, concluding it is the preferred long-term hold.
Warren Slams Trump as 'Petulant Child' Over Housing Bill Ceremony, Polymarket Sees 93% Passage Odds
Senator Elizabeth Warren blasted President Donald Trump as a 'petulant child' after he canceled the signing ceremony for the bipartisan 21st Century ROAD to Housing Act, the most sweeping housing affordability bill in decades. The legislation cleared the Senate 85-5 on Monday and passed the House 358-32 on Tuesday. Trump posted Wednesday that he would withhold his signature until lawmakers pass the SAVE America Act, an elections measure he called a 'National Emergency.' Polymarket traders are pricing the housing bill at 93% to become law this year, with roughly $38,000 in volume on the outcome. A bill becomes law automatically if Congress remains in session and the president neither signs nor vetoes it within a ten-day window.
Several companies announced quarterly dividends. AZZ declared a first quarter cash dividend of $0.24 per share, payable on July 30, 2026 to shareholders of record on July 9, 2026. Lennar declared a quarterly cash dividend of $0.50 per share for both Class A and Class B common stock, payable on July 24, 2026 to holders of record on July 10, 2026. Matson declared a third quarter dividend of $0.38 per common share, a two-cent or 5.6% increase over the previous quarter, payable on September 3, 2026 to shareholders of record on August 6, 2026. Marvell Technology announced a quarterly dividend of $0.06 per share of common stock, payable on July 30, 2026 to stockholders of record on July 10, 2026. Woodward declared a cash dividend of $0.32 per share for the quarter, payable on September 3, 2026 to stockholders of record on August 20, 2026.
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