Scott holds LEN 49.08: We believe that it is not unreasonable to expect the company to come closer to $4.00 per share, based simply on the trend of the company beating estimates and the strong bookings that Lennar continues to receive.

If broad demand for housing continues to grow (and we believe that it will), expectations for 2016 may prove to be conservative. Even if the broad housing market growth comes under pressure, Lennar should be able to continue to collect rental income, helping to insulate some of the company's exposure to new building. Diversifying into the rental market should help Lennar add more stability to its future earnings. This trend has resulted in strong demand for rental units, and a steady rise in rental rates for families in the U.S. Would-be homeowners are increasingly opting to rent, so as not to be tied to a home that could become more of a burden than an investment.


Sonya:
Not only do they worry about fluctuating values for homes, there is also the challenge of mobility.

Han:
Based on Yellen's statements following the Fed announcement, it looks like the Federal Reserve will remain accommodative, even if the board does decide to make one interest rate hike before the end of the year.

Maurice:
Last week's Fed decision to keep interest rates near zero should continue to help propel demand for new homes.

Shaina:
This is in stark contrast to the low level of lending standards in the months leading up to the financial crisis.

Rachael:
As builders break ground on these new projects, we should see deliveries (and revenue) pick up in future quarters.

Jacquelynn:
This was slightly below (but still within striking distance) of analyst expectations.

Dagny:
Last week, the Commerce Department announced that new-home starts declined 3% for the month of August to an annualized rate of 1.16 million homes built.

Candyce:
It doesn't appear that the housing market is in danger of becoming inflated and risky (like the environment we saw in 2006 and 2007), but demand for residential construction continues to drive steady growth.

Marlys:
The good news is that this growth appears to be very sustainable.

Huong:
This summer has featured steady growth for the U.S. housing market.

Lennar Corp. (NYSE:LEN)
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