Homebuilding Giant Lennar Corporation Set for Home Run in Making
Lennar Corporation is poised to gain momentum from the ongoing housing shortage in the US, with estimates suggesting that 1.5 million homes need to be built to cope with population growth and reconstruction needs. The company's shares have been steadily increasing, driven by its focus on underbuilding activities and its efforts to adopt an asset-light model with a superior growth rate and free cash flow. Lennar's projected revenue growth of 10% and operating margin of 13.5% make it an attractive investment opportunity.
- The housing shortage in the US presents a significant opportunity for homebuilders like Lennar, who can capitalize on the demand for new homes.
- As the industry continues to recover from the pandemic, Lennar's focus on land acquisition and development will be crucial in meeting the anticipated demand for housing units.