7 Stocks That Could Surge From LA Wildfires Recovery Efforts

5. Lennar Corporation (NYSE:LEN)

Lennar Corporation stock’s sell-off has been more pronounced than its peers. The stock is down 32% since September and this poor performance is what sets it up nicely for a possible outperformance in 2025. Analysts at RBC Capital Markets believe the stock has already fallen so low that the risk-reward ratio aligns well with investors who want to buy the company’s stock.

LEN is planning to get rid of its land assets by spinning them off into a new REIT company. Investors will receive shares of this new company, increasing shareholder value through possible future dividends. Future expansions of this new REIT will also have no financial implications for LEN, helping it maintain its strong balance sheet.

The improving cost management as a result of this spin-off will also help resolve LEN’s inventory problems, helping it improve its return on equity. These short-term catalysts set up the company well for a 2025 outperformance.