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Reston, Virginia-based NVR, Inc. (NVR) engages in the construction and sale of single-family detached homes, townhomes, and condominium buildings, all of which are primarily constructed on a pre-sold basis. With a market cap of $29.4 billion, NVR operates through the Homebuilding and Mortgage Banking segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," NVR fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the residential construction industry. It sells its homes and buildings under Ryan Homes, NVHomes, and Heartland Homes names.
NVR touched its all-time high of $9,423 on Sep. 13 before slightly pulling back. NVR has gained 22.4% over the past three months, outpacing the S&P 500 Index’s ($SPX) 3.5% gains during the same time frame.
Over the longer term, NVR looks even more appealing. NVR gained 53.6% over the past year and 33.8% in 2024, outperforming SPX’s 25.9% gains over the past 52 weeks and 18% returns on a YTD basis.
To confirm the bullish trend, NVR has mostly traded above its 50-day and 200-day moving averages over the past year, with slight fluctuations.
Shares of NVR dipped 2.3% in the trading session after the release of its Q2 earnings on Jul. 23. The homebuilder reported a solid 11.6% annual growth in homebuilding revenue, totaling $2.6 billion, and an impressive 18.3% growth in mortgage banking fees, amounting $64.6 million. Despite these positive figures, NVR’s net income saw a slight decline, settling at $400.9 million. Its EPS of $120.69 fell just short of consensus estimates, prompting investor caution.
Nevertheless, the company repurchased shares worth $1.1 billion during the first half of 2024, demonstrating its commitment to shareholders.
NVR’s competitor, PulteGroup, Inc. (PHM), has outperformed NVR. PHM gained 81.3% over the past 52 weeks and 35.2% on a YTD basis.
Among the 6 analysts covering the NVR stock, the consensus rating is a “Hold.” NVR is trading above its mean-price target of $8,650, and the Street-high target of $9,500 represents a potential upside of 1.4% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
