With a market cap of $29.1 billion, Lennar Corporation (LEN) is one of the largest homebuilders in the United States. The company operates through multiple segments including Homebuilding, Financial Services, Multifamily, and Fund Investment, with core operations focused on constructing and selling single-family homes, as well as developing and managing multifamily rental properties. 

Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Lennar fits this criterion perfectly. Lennar also provides residential mortgage financing, title, insurance, and closing services, catering to a wide range of buyers including first-time, move-up, active adult, and luxury homebuyers.

Shares of the Miami, Florida-based company pulled back 43.1% from its 52-week high of $193.80. Lennar’s shares have dropped 11.1% over the past three months, underperforming the broader S&P 500 Index’s ($SPX) 4.1% gain over the same time frame. 

In the longer term, LEN stock is down 18.4% on a YTD basis, lagging behind SPX’s 2.1% rise. In addition, shares of the homebuilder have decreased 28.4% over the past 52 weeks, compared to the 12.3% return of the SPX over the same time frame.

The stock has been trading below its 50-day moving average since late October last year and its 200-day moving average since early December last year. 

Despite beating expectations with Q1 2025 revenue of $7.6 billion and adjusted EPS of $2.14 on Mar. 20, Lennar stock fell over 4% the next day due to a sharp 24.6% drop in net income to $520 million. Investors were also concerned about declining home prices, average sales price dipped 1% to $408,000 and eroding gross margins, which fell to 18.7%, driven by rising land costs and lower revenue per square foot. Additionally, the company warned of affordability pressures and forecasted further declines in average sales prices to $390,000 - $400,000 in Q2, dampening sentiment.

Moreover, LEN has performed weaker than its rival, D.R. Horton, Inc. (DHI). DHI stock has decreased 12.5% over the past 52 weeks and 12.3% on a YTD basis. 

Despite the stock’s underperformance over the past year, analysts remain moderately optimistic on LEN. The stock has a consensus rating of “Moderate Buy” from the 19 analysts covering the stock, and as of writing, it is trading below the mean price target of $133.78.