Lennar's Margin Pressures Persist

Lennar remains a "Sell" as persistent housing market weakness and elevated mortgage rates pressure margins and earnings. LEN's aggressive delivery targets and high inventory levels force reliance on incentives, further eroding pricing power and profitability. Gross margins declined to 15.2% in Q1, with EPS now expected at $5.00–$6.00 for the year, implying a stretched 16x P/E valuation.