PREVIEW: Lennar shares up ahead of earnings; mortgage uncertainty in focus

Lennar LEN.N shares rise 1.2% ahead of qtrly results after the bell, as investors focus on the impact of volatile mortgage rates on home sales

For fiscal qtr ending in February, analysts expect rev up 2% to $7.43 bln, with adjusted EPS seen at $1.73 vs $2.57 yr-ago, per LSEG, highlighting challenges from affordability issues due to higher interest rates

U.S. single-family homebuilding rebounded sharply in February amid a thaw in winter weather, but rising prices for raw materials because of tariffs threaten the nascent recovery

LEN's stock has slipped about 8% YTD, underperforming the S&P 500 .SPX, which has fallen 3% in the same period

The stock is about 35% below its 52-week intraday high of $186.66 reached last September, reflecting uncertainty about housing market

Stock recently traded at 9 times expected earnings, above its avg forward PE of 8 over the past five years, per LSEG data, indicating potential overvaluation concerns

In the past 30 days, none of the 22 analysts covering the co have raised their EPS estimates for the qtr, while four have revised downwards, signaling cautious sentiment