LEN – Market expectations are for Uniform ROA compression, but management appears optimistic about homebuyer trends, internet leads, and their backlog

• Lennar Corporation (LEN:USA) currently trades below historical averages relative to UAFRS-based (Uniform) Earnings, with a 13.0x Uniform P/E, implying bearish expectations for the firm. However, management appears optimistic about homebuyer trends, internet leads, and their backlog
• Specifically, management generated an excitement marker when talking about buyers locking in affordable homes. Moreover, they are confident in internet lead growth, the value of CalAtlantic’s conversion to the Everything’s Included Platform, and the strength of their sales backlog and housing inventory.