15 Best and Cheap Stocks to Buy According to Billionaires

6. Lennar Corporation (NYSE:LEN)

Forward P/E Ratio: 9.36

No. of Billionaire Investors: 18

Lennar Corporation (NYSE:LEN) is a homebuilding company that is engaged in the construction and sale of single-family attached and detached homes. Lennar also does the purchase, development, and sale of residential land; and the development, construction, and management of multifamily rental properties.

On March 17, Wedbush analyst Jay McCanless reiterated a Neutral rating on LEN shares, keeping the price target at $158 per share ahead of its first quarter FY25 earnings. During Q1 2025, the company posted an EPS of $2.14, beating estimates by $0.39. Lennar’s revenue came in at $7.6 billion, surpassing the consensus estimate of $7.4 billion. LEN’s Q1 earnings and revenue have surpassed McCanless’ estimates as well.

Around 1.5 million homes are needed to be built due to the increase in population and reconstruction of houses due to fires and storms. The construction pace is slow and is expected to take 10-15 years to cope with the increasing demand due to a shortage of land. Lennar Corporation (NYSE:LEN) is expected to gain momentum from underbuilding activities that have led to a shortage of 2-3 million housing units in the U.S. The market has an inelastic demand that would potentially create a sustainable demand for LEN.