Why Lennar Corp. (LEN) Surged on Monday

We recently compiled a list of the 10 Firms Post Impressive Gains on Monday. In this article, we are going to take a look at where Lennar Corp. (NYSE:LEN) stands against the other stocks.

Wall Street ended the first trading day of the week on a mixed note, with the Dow Jones the sole gainer, up 0.65 percent.

The S&P 500 and Nasdaq both fell by a whopping 1.46 percent and 3.07 percent, respectively, over fears that China is overtaking the US in innovations in the Artificial Intelligence industry, dampening confidence at a time when the world’s largest economy is bolstering investments in the sector.

Meanwhile, ten companies under mixed sectors ended the day stronger. In this article, we will take a look at which of the 10 companies posted impressive gains during a broader market pessimism and look at the reasons behind their rally.

Monday’s top advancers only considered the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A construction crew installing roof tiles on a newly built row home.

Lennar Corp. (NYSE:LEN)

Property developer Lennar Corp. saw its share prices rise by 4.14 percent on Monday to end at $137.82 apiece following news that it would develop a 170-acre real estate project on the rural southwest side of Whitestown Indiana.

To be called Cardinal Estates, Lennar Corp. would build 360 houses expected to be catered to individuals aged 55 and above.

The active adult community would feature mostly one-story houses and some homes with partial second stories. While the project would cater mostly to senior citizens, Lennar Corp. said that there would not be an age limit for those who could live in the subdivision.

According to the company, each unit would range from about $250,000 to $350,000 which translates to a potential sales value between $90 million to $126 million.

Overall LEN ranks 9th on our list of Monday’s top advancers. While we acknowledge the potential of LEN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than LEN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.