Comparable Company Analysis: WestRock Company (WRK), Lennar Corporation (LEN)

You should consider shares of WestRock Company (NYSE:WRK) and Lennar Corporation (NYSE:LEN) if you are looking for a great stocks to invest in. Starting with the WRK shares, which traded at $39.50 at the close of the recent session, dropping -2.23%. On Tuesday, the company’s shares shed -$0.9 from its value which represented in intraday trading. The stock is now -16.15% lower in year-to-date (YTD) trading. WRK’s intraday high was $39.91 while its lowest price touched $39.16. The stock’s 52-week high price is $48.55, which means the current price is at -18.64%. In terms of trading activity, the daily trading volume rose to 2609423 against 200-day average trading volume of 2,391,931 shares.

What are analyst forecasts for WestRock Company (NYSE:WRK)?

At a consensus rating of 3.73, WRK is trending as a streaking Moderate Buy, as it has been the case a month ago when 10 analysts called it a Hold. Two months ago, 11 analysts recommended, on average, that WRK stock is a Hold. The Consumer Goods company’s shares’ overall bearish trend saw it close higher on Tuesday compared to its opening price of $39.71 on the day.

Forecasts for WestRock Company (NYSE:WRK) give the stock a fair value for the growth of 12.22% from its last price. The 12-month price forecast for the stock by analysts puts the stock’s mean price target at $45.00, which means the price per share could rise by nearly $5.5. The price range target is between a low of $34.00 and a high of $61.00. The stock would need to gain by about $35.25 to hit the estimated high or 0.81% from its 12-month low.

The consensus among 15 analysts is that it is a good time for one to Overweight in the WestRock Company. 6 analysts rate WRK as a Buy, with 1 of 15 analysts rate it as a Sell. 1 have valued the stock as Overweight and 7 have recommended that investors Hold.

WestRock Company (NYSE:WRK) Upgrades and Downgrades

In terms of rating changes, Exane BNP Paribas on December 02, 2019, Initiated WestRock Company (WRK) at Outperform. Analysts at BofA/Merrill have assigned a Buy rating for the stock in their research note on November 18, 2019. Moreover, KeyBanc Capital Markets analysts issued a rating of Underweight for the stock on July 15, 2019, giving it a price target of $32 for the next 12 months. On May 15, 2019, the stock earned a Buy rating due to an analyst call from UBS, while analysts from Deutsche Bank on April 17, 2019 suggested that the stock is Hold.

Lennar Corporation (NYSE:LEN) adds $0.07 on Tuesday

The LEN stock has risen 50.52% year-to-date and is currently trading at $58.93, which is -5.91% below its 52-week high. The company shares gained 0.12% on the day and have risen nearly 58.03% off a low hit. At current levels, Lennar Corporation has a valuation of about $21.75B. As of 12/03/19, this stock has fallen -0.84% during the week and closed at $58.86 in the previous session. However, recent Lennar Corporation stock performance shows that LEN shares are -3.20% down over the last month, and 13.35% up for the last three months.

Earnings per share (EPS) estimates for the current quarter are $1.92, with the trailing 12-month share earnings at $6.08. The ratio is expected to be up by 1.50% for the current year 2019 and 8.70% for next year. Over the next 5-year period, earnings per share will be 9.85%. But will the LEN stock surprise in the current quarter results, where the $1.59 actual EPS reported on 8/30/2019 surprised by 20.50% or was higher by $0.27 from the estimated $1.32.

Sales Growth to climb 3.20% for the year

How well will Lennar Corporation perform as a business over the current quarter, year and next 5-year period? Compared to the year-ago quarter, analysts forecast the company to bring in between $6.45B and $6.85B in current quarter sales. The consensus estimated for the current quarter is $6.63B from sales. Forecasts for this fiscal year are between $21.71B and $21.95B and the consensus estimate for sales is at $21.87B. LEN has its next quarter sales estimates at between $3.73B and $3.99B, with the quarter-over-quarter growth estimates at 0.40% and the annual growth forecast for the year at 3.20%.

Who owns shares in Lennar Corporation (LEN)?

Let’s briefly focus on the share ownership of the Lennar Corporation (NYSE:LEN) stock, where we find that 97.57% of shares are held by institutions. Vanguard Group, Inc. (The) tops the list of institutional owners as it is holding 31.35 million shares or 11.20% of shares outstanding. Blackrock Inc. and Wellington Management Company, LLP held 21.48 million and 15.43 million representing 7.68% and 5.51% respectively at the close of the last trading session. As of Sep 29, 2019, State Street Corporation accounted for 12.51 million shares at over 698.53 million. This represented 4.47% of shares outstanding. Sanders Capital, Llc held 11.24 million shares at over 627.83 million representing 4.02% of shares outstanding.

LEN Insider Activity

Insider activity can also give a signal in terms of price direction. Looking at Lennar Corporation (LEN), a total of 1270000 shares have been sold by insiders over the last 6 months while 2198837 shares were added in the same time span. On 9/21/2019, President by the name Jaffe Jonathan M sold 48635.0 shares worth $2.6 million at the price of $54.10 per share. Filings also show that Jaffe Jonathan M sold a total of 20000.0 shares on 10/01/2019 valued at $1.1 million. Since the last insider activity, the company’s share price has climbed 5.76%.