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NVR (NVR) Hits a New 52-Week High on Solid Homebuilding
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Shares of NVR, Inc. (NVR - Free Report) scaled a new 52-week high of $2,083.90 on Mar 29. The homebuilding company’s stock has risen 24.2% year to date, outperforming the Zacks categorized Building-Residential/Commercial industry’s gain of 24.1%.
What’s Driving It?
NVR is poised to gain traction on the current positive housing scenario. Steady job and wage growth, a recovering economy, moderating home price gains, historically low interest/mortgage rates, rising rentals, rapidly increasing household formation and a limited supply of inventory point to strong demand in 2017.
Number of reports released this month suggests that the outlook for the homebuilding sector remains positive and is expected to improve over the year. Homebuilders’ confidence for March reached the best level in the last 12 years. Additionally, new home sales and residential construction data were also positive.
Considering the positive momentum, homebuilding stocks like NVR and KB Home (KBH - Free Report) scaled new 52-week highs on Mar 29.
NVR is involved in the construction and sale of single-family detached homes, townhomes and condominium buildings. The stock has a VGM or Value-Growth-Momentum score of “A”.
NVR expects earnings growth of 23.6% for the current year on 15.6% revenue growth. Its earnings estimate for the current year has improved by 5.5% over the last 90 days.
Moreover, NVR has a solid 3–5 year earnings per share growth rate of 11.95%.
The stock’s rock-solid trailing 12-month Return on Equity (ROE) ratio of 32.6% compared with the industry average of 11%, indicates that the company reinvests more efficiently compared to its peer group.
The company also registered impressive order growth in fourth quarter 2016. New orders in the quarter increased 18% year over year to 3,645 units. NVR’s backlog of homes sold but not settled as of Dec 31, 2016 increased on a unit basis by 11% and increased on a dollar basis by 14%.
For full-year 2017, PulteGroup’s earnings per share is expected to increase 31.5% and 7.8% for Lennar.
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NVR (NVR) Hits a New 52-Week High on Solid Homebuilding
Shares of NVR, Inc. (NVR - Free Report) scaled a new 52-week high of $2,083.90 on Mar 29. The homebuilding company’s stock has risen 24.2% year to date, outperforming the Zacks categorized Building-Residential/Commercial industry’s gain of 24.1%.
What’s Driving It?
NVR is poised to gain traction on the current positive housing scenario. Steady job and wage growth, a recovering economy, moderating home price gains, historically low interest/mortgage rates, rising rentals, rapidly increasing household formation and a limited supply of inventory point to strong demand in 2017.
Number of reports released this month suggests that the outlook for the homebuilding sector remains positive and is expected to improve over the year. Homebuilders’ confidence for March reached the best level in the last 12 years. Additionally, new home sales and residential construction data were also positive.
Considering the positive momentum, homebuilding stocks like NVR and KB Home (KBH - Free Report) scaled new 52-week highs on Mar 29.
NVR is involved in the construction and sale of single-family detached homes, townhomes and condominium buildings. The stock has a VGM or Value-Growth-Momentum score of “A”.
NVR expects earnings growth of 23.6% for the current year on 15.6% revenue growth. Its earnings estimate for the current year has improved by 5.5% over the last 90 days.
Moreover, NVR has a solid 3–5 year earnings per share growth rate of 11.95%.
The stock’s rock-solid trailing 12-month Return on Equity (ROE) ratio of 32.6% compared with the industry average of 11%, indicates that the company reinvests more efficiently compared to its peer group.
The company also registered impressive order growth in fourth quarter 2016. New orders in the quarter increased 18% year over year to 3,645 units. NVR’s backlog of homes sold but not settled as of Dec 31, 2016 increased on a unit basis by 11% and increased on a dollar basis by 14%.
Zacks Rank & Key Picks
NVR currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the sector are PulteGroup, Inc. (PHM - Free Report) and Lennar Corp. (LEN - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
For full-year 2017, PulteGroup’s earnings per share is expected to increase 31.5% and 7.8% for Lennar.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>