Warren Buffett's Homebuilder Bet Lennar Slides In Quality Ranking After Mixed Q4

Lennar Corp. (NYSE:LEN), a notable holding in Warren Buffett‘s Berkshire Hathaway Inc. (NASDAQ:BRK) (NASDAQ:BRK) portfolio, has seen a sharp deterioration in its fundamental ratings following its fourth-quarter earnings report.

Check out LEN’s stock price here.

Homebuilder’s Fundamental Score Hits Low Percentile

According to Benzinga Edge’s Stock Rankings data, Lennar’s quality score—a percentile ranking of operational efficiency and financial health—dropped from 10.14 to 5.58 week-on-week.

This decline pushes the homebuilder further into the bottom decile of stocks for fundamental quality, signaling that its profitability metrics and operational strength are lagging significantly behind peers.

The drop coincides with a broader bearish sentiment, as the stock’s price trend is currently rated as negative across short, medium, and long-term horizons.

Additional performance details, as per Benzinga’s Edge Stock Rankings, are available here.

See Also: Retail Darling GameStop Jumps In Value Ranking With Massive Cashpile And BTC Holdings Despite Mixed Q3

Earnings Miss Weighs On Financial Health

The erosion in Lennar’s quality ranking appears directly linked to its mixed fourth-quarter performance. While the company reported revenue of $9.37 billion, beating estimates, its adjusted earnings per share (EPS) of $2.03 fell short of the projected $2.21.

The quality ranking is a composite metric specifically designed to analyze historical profitability and fundamental strength. The earnings miss suggests pressure on margins, directly impacting this score.

Additionally, despite a rise in new orders, Lennar noted that the market remains “challenged” due to affordability constraints, a factor likely weighing on forward-looking efficiency projections.

The Buffett Factor Vs. Current Momentum

Despite the weakened quality metrics, Lennar remains a key component of Buffett’s housing sector bets. Berkshire Hathaway held over 7 million Class A shares as of the third quarter.

However, the “Oracle of Omaha’s” backing hasn’t shielded the stock from immediate volatility. LEN has underperformed the market in 2025 as it has declined by 5.48% on a year-to-date basis.

The shares were down 20.06% over the last year and up 7.38% over the six months. It closed 1.80% lower at $117.57 per share on Tuesday.

Read Next:

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo courtesy: Shutterstock