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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 $26.3 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.
Despite its notable strengths, NVR has slipped 14.6% from its all-time high of $9,964.77 achieved on Oct. 18. Furthermore, the stock has declined 9.7% over the past three months, lagging behind the Nasdaq Composite’s ($NASX) surge of 14.7% over the same time frame.
NVR has underperformed the Nasdaq over the longer term as well. NVR has gained 21.6% on a YTD basis and 23.7% over the past 52 weeks, compared to NASX’s surge of 34.4% in 2024 and 36.2% returns over the past year.
To confirm the overall bullish trend, NVR has consistently traded above its 50-day 200-day moving averages since last year. But, the stock has fallen below its 50-day moving average since late October.
NVR stock prices dropped 2.3% after the release of its Q3 results on Oct. 22 as the company missed Wall Street’s expectations. The company delivered a 6.6% year-over-year growth in homebuilding revenues to $2.7 billion, which topped analysts’ estimates. However, its profitability took a hit due to higher lot costs and closing cost assistance. This led to a 121-basis point net margin contraction compared to the year-ago quarter to approximately 16%, resulting in an 88 basis points net income decline to $429.3 million. Nevertheless, due to share buybacks, its EPS increased 4.2% year-over-year to $130.50 but still missed analysts' estimates by 1.2%.
NVR has outpaced its peer PulteGroup, Inc.’s (PHM) 13.4% gains on a YTD basis and 14.2% returns over the past year.
The stock has a consensus “Hold” rating among the seven analysts covering it. Its mean price target of $9,390 represents a 10.3% premium to current price levels.
