Stock of the Day

July 2, 2020

NVR (NVR)

$7,304.83
-$287.37 (-3.8%)
Market Cap: $22.20B

About NVR

NVR, Inc. operates as a homebuilder in the United States. The company operates through, Homebuilding and Mortgage Banking segments. It engages in the construction and sale of single-family detached homes, townhomes, and condominium buildings under the Ryan Homes, NVHomes, and Heartland Homes names. The company markets its Ryan Homes products to first-time and first-time move-up buyers; and NVHomes and Heartland Homes products to move-up and luxury buyers. It also provides various mortgage related services to its homebuilding customers, as well as brokers title insurance; performs title searches in connection with mortgage loan closings; and sells mortgage loans to investors in the secondary markets on a servicing released basis. The company primarily serves in Maryland, Virginia, West Virginia, Delaware, New Jersey, Eastern Pennsylvania, New York, Ohio, Western Pennsylvania, Indiana, Illinois, North Carolina, Georgia, South Carolina, Florida, Tennessee, and Washington, D.C. NVR, Inc. was founded in 1980 and is headquartered in Reston, Virginia.

NVR Bull Case

Here are some ways that investors could benefit from investing in NVR, Inc.:

  • The current stock price is around $7,283, reflecting a stable market position for NVR, Inc.
  • Institutional ownership is high at approximately 83.67%, indicating strong confidence from large investors.
  • Recent analyst upgrades suggest a positive outlook, with a consensus rating of "Hold" and a target price of around $9,023.33.
  • NVR, Inc. has demonstrated resilience with a low debt-to-equity ratio of 0.23, suggesting financial stability and lower risk.
  • The company has a solid market capitalization of $21.27 billion, positioning it well within the construction sector.

NVR Bear Case

Investors should be bearish about investing in NVR, Inc. for these reasons:

  • The stock has experienced a decline of about 0.8% recently, which may indicate short-term volatility.
  • Analysts have cut price targets, with UBS Group lowering theirs from $8,900 to $7,900, reflecting cautious sentiment.
  • Despite a strong market cap, the price-to-earnings (P/E) ratio of 14.99 may suggest that the stock is overvalued compared to its earnings.
  • Recent trading volumes have been lower than average, which could indicate reduced investor interest.
  • The company has a price-to-earnings-growth (PEG) ratio of 3.90, which may suggest that growth expectations are high relative to its earnings growth.

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