에 대한 최신 뉴스 NVR (NYSE:NVR) 주식

NVR Inc is a United States-based homebuilding company. It builds single-family detached homes, townhomes, and condominium buildings under three brands, Ryan Homes, NVHomes, and Heartland Homes. The company through its subsidiary also operates a mortgage banking and title services business. The homebuilding segment includes four geographic areas of the United States; Mid-Atlantic, North East, Mid-East, and South East.

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Shares of housing-related stocks are trading higher after the Fed policy decision to cut rates by 50 basis points, which could help curb housing unaffordability and increase demand.

New construction on single-family homes in the U.S. <a href="https://www.benzinga.com/news/23/06/32926608/us-housing-starts-skyrocket-to-highest-level-since-2016-sign-of-strong-market-optimism-among-builder">jumped in August</a> as mortgage rates trend downward and the Federal Reserve is expected to cut rates on Wednesday for the first time in four years.
Single-family housing starts last month came in at an annualized rate of 992,000 units, up 15.8% from a revised figure of 857,000 for July, according to Commerce Department data released on Wednesday.
Starts for all privately-owned housing in August totaled an annualized rate of 1.356 million units, up 9.6% from the July revised estimate of 1.237 million and up 3.9% from the August 2023 rate of 1.305 million.
Single-family housing completions reached an annualized rate of 1.029 million in August, registering a 5.6% decline from July&#8217;s revised rate of 1.09 million.
Completions for all privately-owned homes in August were at a seasonally adjusted annual rate of 1.788 million, up 9.2% from the July revised estimate of 1.637 million and 30.2% above the July 2023 rate of 1.373 million.
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37845734/housing-starts-rebound-lift-homebuilder-stocks-sign-of-economic-resilience">Housing Starts Rebound, Lift Homebuilder Stocks: Sign Of Economic Resilience</a>
Building permits also rose last month, Commerce Department data showed.
Single-family authorizations in August were at a rate of 967,000, up 2.8% from the revised July figure of 941,000.
Privately-owned housing units authorized by building permits in August were at a seasonally adjusted annual rate of 1,475,000. That&#8217;s up 4.9% from the July revised rate of 1.406 million but below the August 2023 rate of 1.578 million.
The average rate for <a href="https://www.benzinga.com/news/24/09/40921345/mortgage-rates-drop-to-2-year-low-refinancing-hits-fastest-pace-since-2022-rocket-lendingtree-among">30-year mortgages</a> fell 14 basis points in the week ended Sept. 13 to 6.15%, marking the lowest rate since September 2022, according to the Mortgage Bankers Association.
The Federal Reserve is <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40921827/fed-decision-is-here-5-things-investors-need-to-know-ahead-of-wednesdays-pivotal-in">expected to lower</a> its key interest rate ranging from 5% to 5.25% on Wednesday by either 25 or 50 basis points, signifying its first rate decline in four years.
Price Action: Homebuilders slid into Wednesday&#8217;s mid-day trading.
<ul>
<li>D.R. Horton, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) slipped 0.86% to $193.67 </li>
<li>Pulte Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PHM#NYSE">PHM</a>) declined 0.41% to $139.88</li>
<li>NVR, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVR#NYSE">NVR</a>) went down 0.34% to $9,542.99</li>
</ul>
Exchange-traded funds that hold homebuilder stocks showed gains and losses.
<ul>
<li>IShares U.S. Home Construction ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITB#BATS">ITB</a>) declined 0.57%</li>
<li>Direxion Daily Homebuilders &amp; Supplies Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NAIL#NYSE">NAIL</a>) fell 1.8%</li>
<li>Pacer US Cash Cows Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BUL#NYSE">BUL</a>) gained 0.2%</li>
</ul>
Read Now:
<ul>
<li>&#8216;<a href="https://www.benzinga.com/real-estate/24/08/40666981/the-time-has-come-to-adjust-cheaper-mortgage-rates-could-be-just-weeks-away-but-it-all-hinges-on-thi">The Time Has Come to Adjust&#8217; — Cheaper Mortgage Rates Could Be Just Weeks Away, But It All Hinges On This Data</a></li>
</ul>
Image: Shutterstock

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NAIL

Single-Family Housing Starts Are Up As Mortgage Rates Decline, Fed Eyes Lower Rates

Prospective homebuyers are holding off on<a href="https://www.benzinga.com/real-estate/24/06/39465243/u-s-home-sales-decline-for-third-month-as-record-prices-pose-persistent-affordability-challenges-dur"> buying new homes</a> as they bet on mortgage rates falling further, causing slow home sales, according to builders.
And why wouldn&#8217;t they wait?
In the week ending Aug. 23, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $766,550 slipped from <a href="https://finance.yahoo.com/news/mortgage-rates-hit-17-month-200029576.html?fr=yhssrp_catchall">6.5% to 6.44%</a>. This marks the lowest level since April 2023 and the fourth consecutive week of rate declines, according to the Mortgage Bankers Association (MBA).
Read Also: <a href="https://www.benzinga.com/real-estate/24/08/40629862/where-billionaires-are-snapping-up-homes-in-2024-hint-no-fear-of-climate-disasters">Where Billionaires Are Snapping Up Homes In 2024 — Hint, No Fear Of Climate Disasters</a>
&#8220;As observed in recent weeks, despite lower rates, purchase applications have not moved much,&#8221; said Joel Kan, MBA's vice president and deputy chief economist. 
&#8220;Prospective homebuyers are staying patient now that rates are moving lower and for-sale inventory has started to increase.&#8221; 
Mortgage applications saw a modest increase of 0.5% from the previous week, according to the Mortgage Bankers Association's (MBA) Weekly Applications Survey.
Refinancing activity showed a slight decline. The Refinance Index fell by 0.1% from the prior week, though it remains 85% higher than the same week last year, reflecting a robust annual surge in homeowners looking to take advantage of the lower rates.
Adjustable-rate mortgages (ARMs) also saw a decrease in interest rates. The average contract interest rate for 5/1 ARMs fell to 5.98% from 6.25%, indicating some relief for borrowers seeking more flexible loan terms.
Existing home sales increased for the first time in five months as falling mortgage rates have convinced prospective buyers to take out loans. However, sales are still slow as homeowners with mortgage rates around 3% wait for rates to fall even further, according to the National Association of Home Builders (NAHB).
Total existing-home sales rose 1.3% to a seasonally adjusted annual rate of 3.95 million in July. This marks the first increase after four months of declines. On a year-over-year basis, sales were still 2.5% lower than a year ago.
&#8220;Despite these changes, sales remained sluggish and low inventory continued to push up median home prices,&#8221; the NAHB said on Monday.
Homeowners with lower mortgage rates have opted to stay put, avoiding trading existing mortgages for new ones with higher rates.
This &#8220;lock-in&#8221; trend is causing home prices to rise and holding back inventory, but this trend should reverse as mortgage rates keep declining, the NAHB said.
&#8220;Mortgage rates are expected to continue to decrease gradually, leading to increased demand (and unlocking more of the lock-in inventory) in the coming quarters,&#8221; it said.
Price Action: Mortgage companies moved modestly on Wall Street into Thursday&#8217;s mid-afternoon trading.
<ul>
<li>UWM Holdings Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UWMC#NYSE">UWMC</a>) declined 0.93% to $9.07</li>
<li>Rocket Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RKT#NYSE">RKT</a>), parent company of Rocket Mortgage, fell 1.79% to $19.21</li>
<li>Bank of America Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) went up 0.45% to $40.13</li>
</ul>
Home builders also moved little on Thursday.
<ul>
<li>D.R. Horton Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) fell 0.09% to $187.41</li>
<li>Lennar Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>) gained 0.55% to $168.01</li>
<li>NVR, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVR#NYSE">NVR</a>) ticked up 0.22% to $9,049.14</li>
</ul>
Read Now:
<ul>
<li><a href="https://www.benzinga.com/real-estate/24/08/40485633/kamala-harris-3-million-homes-promise-everything-else-wont-work-unless-we-have-more-supply-says-chie">Kamala Harris&#8217; 3 Million Homes Promise: &#8216;Everything Else Won&#8217;t Work Unless We Have More Supply,&#8217; Says Chief Economist</a></li>
</ul>
Image: Midjourney

UWMC

Homebuyers Turn Screws On Builders As Mortgage Rates Are Telegraphed To Fall

CVCO

Shares of household durable companies are trading higher following strong New Home Sales economic data for July. Also, the sector may be moving in sympathy with the market after Fed Chair Powell offered an optimistic U.S. economic outlook and indicated future rate cuts.

Shares of homebuilders are trading higher in sympathy with Toll Brothers, which reported better-than-expected Q3 financial results and issued guidance above estimates.

Toll Brothers, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tol#NYSE">TOL</a>) is scheduled to report third-quarter fiscal 2024&nbsp; (ended Jul 31, 2024) results on Aug 20, after the closing bell.
In the last reported quarter, the company&#39;s earnings missed the Zacks Consensus Estimate by 18.2%, but revenues beat the mark by 12.6%. Earnings and revenues increased 18.6% and 13.2% from the prior-year period, respectively.
On an encouraging note, earnings topped analysts&#39; expectations in three of the trailing four quarters and missed on another occasion, the average surprise being 12.9%.
<h3>Trend in Estimate Revision</h3>
The Zacks Consensus Estimate for the fiscal third-quarter earnings per share increased to $3.28 from $3.25 over the past 60 days. The said figure indicates a 12.1% decline from the year-ago EPS of $3.73.
The consensus mark for revenues is pegged at $2.7 billion, indicating 0.3% year-over-year growth.
<div class="chart_embed">
<h3>Toll Brothers Inc. Price and EPS Surprise</h3>
<img alt="Toll Brothers Inc. Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/6e/1723708230.png" style="height:294px; width:610px" title="" />
Toll Brothers Inc. price-eps-surprise | Toll Brothers Inc. Quote
</div>
<h3>Factors to Note</h3>
Toll Brothers&#39; fiscal third-quarter home sales are expected to have increased slightly from the year-ago reported level, given higher deliveries. Although higher mortgage rates will impact the volumes to some extent, low-existing homes for sale have been driving demand for new homes in the market. This tailwind is likely to have helped the company drive growth.
This apart, its focus on luxury move-up buyers, who already possess a residence and are looking to shift to larger and better homes, will somewhat contribute to the revenues. Toll Brothers has been enjoying greater pricing power than other homebuilding companies, as luxury homebuyers are less sensitive to price changes. The company has also been benefiting from the strategy of broadening its product lines, price points and geographies, along with spec sales.
On the fiscal second-quarter earnings call, TOL stated that it expects higher home deliveries within 2,750-2,850 units from 2,524 units delivered in the prior-year quarter (considering the midpoint) at an average price of $950,000-$960,000 (suggesting a decline from $1,059,100 a year ago).
Higher land, labor and raw material costs, along with high incentives, are expected to put pressure on the fiscal third-quarter margins. Toll Brothers expects the adjusted home sales gross margin to be 27.7%, implying a decrease from 29.3% reported in the year-ago period. SG&amp;A expenses are estimated to be 9.2% of home sales revenues, indicating a rise from 8.6% reported in the year-ago period. The company expects the effective tax rate to be 26%. 
Our Estimates 
Our model predicts home sales revenues to decline 0.7% year over year to $2.66 billion due to a lower ASP projection of $955,300 (down 9.9% year over year). We expect deliveries to grow 10.1% year over year to 2,779 units in the quarter.
We expect net signed contracts to be around 2,904 units, indicating an improvement of 29.3% from the prior-year reported figure.
Our model predicts a backlog of 7,217 units, indicating a decline of 1.1% from the year-ago period. The same for the backlog (in values) is pegged at $7.57 billion, implying a decline of 3.9% from the $7.87 million recorded at the third quarter of fiscal 2023-end.
<h3>What Our Quantitative Model Predicts</h3>
Our proven model does not conclusively predict an earnings beat for Toll Brothers this time around. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, this is not the case here, as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they&#39;re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
<h3>Peer Releases</h3>
Meritage Homes Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mth#NYSE">MTH</a>) reported impressive second-quarter 2024 results, wherein the earnings and total closing revenues topped the Zacks Consensus Estimate and grew year over year.
MTH&#39;s quarterly results were backed by resilient housing demand and the company&#39;s progress in delivering quick-turning and affordable move-in-ready homes. Meritage Homes now expects 14,750-15,500 home closings for the year, up from the prior expected range of 14,500-15,000. The closings are now likely to generate revenues between $6.1 billion and $6.3 billion, up from the priorly expected range of $6-$6.2 billion.
NVR, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nvr#NYSE">NVR</a>) reported mixed second-quarter 2024 results, with earnings missing the Zacks Consensus Estimate while Homebuilding revenues surpassed the same. On the other hand, both metrics increased on a year-over-year basis.
The upside was backed by improved demand trends, which resulted in higher settlements. Although the cancelation rate increased during the second quarter, growth in new orders and increased ASP of new orders are encouraging for the company&#39;s prospects. Settlements in the quarter were up 11% year over year to 5,659 units. New orders increased 3% from the prior-year quarter&#39;s level to 6,067 units. On a unit basis, backlog at the end of Jun 30, 2024, improved 3% from the prior-year quarter&#39;s figure to 11,597 homes and 6% on a dollar basis to $5.45 billion.
PulteGroup Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/phm#NYSE">PHM</a>) reported stellar results in the second quarter of 2024, wherein earnings and revenues handily beat the Zacks Consensus Estimate. On a year-over-year basis, both the bottom and top lines increased.
PHM saw significant benefits from key factors that drove its success. The company&#39;s balanced operating model resulted in increases in closings, average sales price and gross margin, which collectively led to a 19.3% increase in EPS. Effective management of sales price, pace and starts on a community-by-community basis enabled the company to achieve high returns on invested capital and equity, evidenced by a 27.1% return on equity over the past 12 months.
<a href="https://www.zacks.com/stock/news/2322401/toll-brothers-tol-to-post-q3-earnings-what-s-in-the-cards?cid=CS-BENZ-FT-analyst_blog|earnings_preview-2322401">To read this article on Zacks.com click here.</a>

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Toll Brothers' to Post Q3 Earnings: What's in the Cards?

GRMN

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NVFY

YHGJ

Shares of household durable companies are trading lower amid overall market weakness on US economic concerns.

NVR, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nvr#NYSE">NVR</a>) reported mixed second-quarter 2024 results, with earnings missing the Zacks Consensus Estimate while Homebuilding revenues surpassed the same. On the other hand, both metrics increased on a year-over-year basis.
The upside was backed by improved demand trends, which resulted in higher settlements. Although the cancellation rate increased during the quarter, growth in new orders and increased average selling price (&quot;ASP&quot;) of new orders are encouraging for the company&#39;s prospects.
Shares of this leading homebuilder inched down 0.5% during the Jul 23 trading session.
<h3>Inside the Numbers</h3>
The company reported earnings of $120.69 per share, which marginally missed the Zacks Consensus Estimate of $121.65 by 0.8%. The reported figure increased 3.6% from the prior-year quarter&#39;s earnings of $116.54 per share.
<div class="chart_embed">
<h3>NVR, Inc. Price, Consensus and EPS Surprise</h3>
<img alt="NVR, Inc. Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/a0/1721831138.png" style="height:265px; width:605px" title="" />
NVR, Inc. price-consensus-eps-surprise-chart | NVR, Inc. Quote
Homebuilding revenues of $2.55 billion topped the consensus mark of $2.48 billion by 2.7%. Consolidated revenues (Homebuilding &amp; Mortgage Banking fees combined) amounted to $2.61 billion, up 12% on a year-over-year basis.
</div>
<h3>Segment Details</h3>
Homebuilding: The segment&#39;s revenues of $2.55 billion grew 12% from the year-ago quarter. Settlements in the quarter were up 11% year over year to 5,659 units. Our model predicted settlements to increase 8% year over year to 5,492 units. The ASP for the settlements was $450,200, flat year over year. Our estimate was in line with the reported value for the metric.
The gross margin contracted 70 basis points year over year to 23.6%. Our estimate for the metric was 24.3%.
New orders increased 3% from the prior-year quarter&#39;s levels to 6,067 units. The ASP of new orders increased 3% from the prior-year quarter&#39;s figure to $458,800. Our model predicted the ASP of new orders to increase 2.6% year over year to $458,700. The cancellation rate was 12.9%, up from 10.9% a year ago.
On a unit basis, backlog at the end of Jun 30, 2024, improved 3% from the prior-year quarter&#39;s figure to 11,597 homes and rose 6% on a dollar basis to $5.45 billion.
The average active communities were 433 during the quarter, up from 426 reported a year ago.
Mortgage Banking: Mortgage banking fees increased 18.3% year over year to $64.6 million. Mortgage closed loan production totaled $1.53 billion, up 11% year over year. The capture rate was flat year over year at 86%.
<h3>Financials</h3>
As of Jun 30, 2024, NVR had cash and cash equivalents for Homebuilding and Mortgage Banking of $2.44 billion and $31.1 million compared with $3.13 billion and $36.4 million, respectively, at 2023-end.
During the second quarter, NVR repurchased 83,168 shares for $639 million. At June 2024 end, the company had 3,090,266 shares outstanding.
<h3>Zacks Rank &amp; Recent Peer Releases</h3>
NVR currently has a Zacks Rank #2 (Buy).
PulteGroup Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/phm#NYSE">PHM</a>) reported stellar results for the second quarter of 2024, wherein earnings and revenues handily beat the Zacks Consensus Estimate. On a year-over-year basis, the top and bottom lines increased.
PHM saw significant benefits from key factors, which drove its success. The company&#39;s balanced operating model resulted in increases in closings, average sales price and gross margin, which collectively led to a 19.3% increase in earnings per share. Effective management of sales price, pace and starts on a community-by-community basis enabled the company to achieve high returns on invested capital and equity, evidenced by a 27.1% return on equity over the past 12 months.
D.R. Horton, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dhi#NYSE">DHI</a>) reported third-quarter fiscal 2024 (ended Jun 30, 2024) results, with earnings and revenues surpassing Zacks Consensus Estimate. On a year-over-year basis, both the top and bottom lines increased.
DHI now expects consolidated revenues in the range of $36.8-$37.2 billion versus the prior expectation of $36.7-$37.7 billion. The company reported $35.5 billion in revenues in fiscal 2023. Homes closed are anticipated within 90,000-90,500 units versus 89,000-91,000 units expected earlier.
KB Home (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kbh#NYSE">KBH</a>) reported impressive results for the second quarter of fiscal 2024 (ended May 31, 2024). Both earnings and revenues beat the Zacks Consensus Estimate. Shares of this leading homebuilder rose 2.2% in the after-market trading session on Jun 18.
On an encouraging note, KB Home&#39;s earnings increased on a year-over-year basis despite a revenue decline. Leveraging the advantages of its Built to Order model, which provides buyers with choices, flexibility and affordability, the company is confident in its ability to effectively navigate potential fluctuations in housing market conditions.
<a href="https://www.zacks.com/stock/news/2308092/nvr-stock-down-on-q2-earnings-miss-homebuilding-revenues-top?cid=CS-BENZ-FT-analyst_blog|earnings_article-2308092">To read this article on Zacks.com click here.</a>

Earnings Misses

NVR Stock Down on Q2 Earnings Miss, Homebuilding Revenues Top

Costco Wholesale Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COST#NASDAQ">COST</a>) share price has been on a remarkable ascent, trading above $800. This puts the retail giant in prime stock-split territory.
Historically, stock splits occur after substantial price increases, and Costco&#8217;s impressive growth makes it a noteworthy candidate for such a move.
<h3 class="wp-block-heading">Will Costco Follow Rival Walmart&#8217;s Footsteps?</h3>
Walmart Inc&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) 3-for-1 stock split, initiated when its shares were trading below $200, sets a precedent. Costco&#8217;s stock price has far surpassed this level, climbing nearly 30% year-to-date and almost tripling over the past five years. The company's consistent performance and its share price near record highs suggest it could follow Walmart's example.
Related: <a href="https://www.benzinga.com/news/24/01/36857206/walmart-announces-3-for-1-stock-split-the-details">Walmart Announces 3-For-1 Stock Split: The Details</a>
<h3 class="wp-block-heading">Financials Bolster Future Outlook</h3>
Costco's revenue growth remains robust. The company reported a 6.9% increase in net sales for the first 44 weeks of the year and a 5.3% rise in June's comparable sales. E-commerce continues to grow at a double-digit rate, bolstering the company's financial outlook. 
Moreover, Costco's recent <a href="https://www.benzinga.com/news/24/07/39728606/whats-going-on-with-costco-stock-thursday">decision to raise</a> its annual membership fee by $5 indicates confidence in continued growth without alienating its customer base.
Read Also: <a href="https://www.benzinga.com/insights/news/24/07/39933373/heres-how-much-100-invested-in-costco-wholesale-5-years-ago-would-be-worth-today">Here&#8217;s How Much $100 Invested In Costco Wholesale 5 Years Ago Would Be Worth Today</a>
<h3 class="wp-block-heading">Is A Costco Stock Split Eminent?</h3>
Despite these indicators, Costco has not split its stock since 2000, when shares were valued below $100. A stock split would make shares more accessible to a broader range of investors, potentially spurring further interest and investment. The question remains whether Costco will act soon or hold off until the stock price hits $1,000 or more.
A stock split could attract more attention and help Costco maintain its market leadership. However, some argue that a high share price alone isn&#8217;t a strong enough reason for a split. Companies like NVR Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVR#NYSE">NVR</a>) have high stock prices but haven&#8217;t split their shares.
Ultimately, whether Costco opts for a stock split or not, its impressive financial performance and strong market position make it a solid long-term investment.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39938160/8-tesla-analysts-size-up-margins-fsd-robotaxis-new-evs-as-stock-tanks-the-realities">8 Tesla Analysts Size Up Margins, FSD, Robotaxis, New EVs As Stock Tanks: &#8216;The Realities Of Today Vs. The Dreams Of Tomorrow&#8217;</a></li>
</ul>

Long Ideas

COST

Costco Is In Prime Stock Split Territory: Will It Follow Walmart's Lead?

NVR (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nvr#NYSE">NVR</a>) came out with quarterly earnings of $120.69 per share, missing the Zacks Consensus Estimate of $121.65 per share. This compares to earnings of $116.54 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -0.79%. A quarter ago, it was expected that this homebuilder would post earnings of $106.03 per share when it actually produced earnings of $116.41, delivering a surprise of 9.79%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
NVR, which belongs to the Zacks Building Products - Home Builders industry, posted revenues of $2.55 billion for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 2.66%. This compares to year-ago revenues of $2.28 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock&#39;s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management&#39;s commentary on the earnings call.
NVR shares have added about 23.4% since the beginning of the year versus the S&amp;P 500&#39;s gain of 16.7%.
What&#39;s Next for NVR?
While NVR has outperformed the market so far this year, the question that comes to investors&#39; minds is: what&#39;s next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company&#39;s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for NVR: favorable. While the magnitude and direction of estimate revisions could change following the company&#39;s just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $130.78 on $2.67 billion in revenues for the coming quarter and $494.69 on $10.12 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Home Builders is currently in the top 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Meritage Homes (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mth#NYSE">MTH</a>), is yet to report results for the quarter ended June 2024. The results are expected to be released on July 24.
This homebuilder is expected to post quarterly earnings of $5.17 per share in its upcoming report, which represents a year-over-year change of +3%. The consensus EPS estimate for the quarter has been revised 0.5% higher over the last 30 days to the current level.
Meritage Homes&#39; revenues are expected to be $1.58 billion, up 0.5% from the year-ago quarter.
<a href="https://www.zacks.com/stock/news/2307003/nvr-nvr-lags-q2-earnings-estimates?cid=CS-BENZ-FT-tale_of_the_tape|yseop_template_4-2307003">To read this article on Zacks.com click here.</a>

NVR Lags Q2 Earnings Estimates

NVR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVR#NYSE">NVR</a>) reported quarterly earnings of $120.69 per share which missed the analyst consensus estimate of $121.21 by 0.43 percent. This is a 3.56 percent increase over earnings of $116.54 per share from the same period last year. The company reported quarterly sales of $2.61 billion which beat the analyst consensus estimate of $2.51 billion by 3.98 percent. This is a 11.63 percent increase over sales of $2.34 billion the same period last year.

NVR Q2 Adj EPS $120.69 Misses $121.21 Estimate, Sales $2.61B Beat $2.51B Estimate

ARHS

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Shares of household durable stocks are trading higher after store sales of building material and garden supplies rose 1.4% in June. Also, strength may be due to trader optimism that the Fed will cut rates.

Shares of homebuilders and building companies are trading higher as Treasury yields drop following softer-than-expected June CPI figures.

Although the homebuilding industry is facing challenges like high mortgage rates and rising costs, Meritage Homes Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mth#NYSE">MTH</a>) is likely to benefit from improved cycle times and spec strategy implementation. The company&#39;s focus on entry-level and first-move-up homes will likely produce a higher volume in the future.
Shares of this Scottsdale, AZ-based homebuilding company have appreciated 10.9% in the past year compared with the Zacks Building Products - Home Builders industry&#39;s 18.9% rise.
The company reported impressive first-quarter 2024 results, demonstrating its strong performance amid challenging industry conditions. Despite market volatility, earnings and total closing revenues increased on a year-over-year basis by 42.9% and 14.5%, respectively, on the back of higher deliveries and adjusted gross margin (up 340 basis points year over year). Total home orders also rose 14% year over year, driven by strong demand and a low cancellation rate of 8%, supported by the right amount of available inventory.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/62/70628.jpg?v=655983180" />
Image Source: Zacks Investment Research
Let&#39;s discuss the factors supporting positive investor sentiments amid headwinds.
<h3>What Makes the Stock Attractive?</h3>
Solid Spec Strategy: The company&#39;s spec homes are built without a prior buyer lineup, focusing on efficient construction quality and desired features. Meritage Homes&#39; strategy in speculative homebuilding has been consistently driving its revenues. By maintaining a few months&#39; supply of move-in-ready homes based on community-level sales, MTH reduces wait times for buyers compared with traditional methods. This approach also supports a lower average selling price, stimulating demand in the market.
Home closings rose 21% year over year in first-quarter 2024. Its spec-building strategy resulted in 3,507 homes delivered. Solid execution on its spec building and streamlined strategy helped it achieve yet another record backlog conversion rate of 138% and a return on equity of 18% during the quarter.
Prudent Land Acquisition Strategy: The company invests aggressively in land acquisition and development, which is critical for community count and top-line growth. In first-quarter 2024, Meritage Homes accelerated its investment in internal growth, with $430.4 million spent on land acquisition and development, up 39% from $310.1 million a year ago. At March-end, 66,400 lots were owned or controlled by the company compared with 60,900 lots a year ago. For the year, it expects land spending in the $2-$2.5 billion range as it develops its land and ramps up its lot portfolio for community count growth.
Focus on Entry-Level Buyers: Meritage Homes remains focused on the growing demand for entry-level homes with its LiVE.NOW product that addresses the need for lower-priced homes, given the rising interest rates and home prices. The successful execution of strategic initiatives to boost profitability and focus on entry-level LiVE.NOW homes boosted the upside.
The company believes that its strategy of targeting entry-level and first-move-up buyers is gaining traction and will continue to boost performance over the long haul. In the first-quarter 2024, entry-level buyers represented 91% of sales orders versus 87% in the year-ago period. The new lots added this quarter represent 43 future communities, all for entry-level products. Additionally, the company has approximately 28,000 lots in its pipeline, where due diligence is still ongoing.
MTH strategically shifts to being a pure-play entry-level and first-move-up builder, expecting higher absorptions with an improving community count growth trajectory. Additionally, the company has reduced average sales price&nbsp;in the first quarter by 4% year over year for the homes to address the needs of millennials and baby boomers who want affordable homes and highly desirable communities.
<h3>Valuation &amp; Estimate Revision</h3>
The company&#39;s earnings estimates for 2024 showcase growth rate of 1.7% from the year-ago period&#39;s tally on a 1.3% revenue improvement. Its earnings topped the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 27%. Earnings estimates for 2024 have increased to $20.27 per share from $19.99 in the past 60 days. The positive trend signifies bullish analysts&#39; sentiments and robust fundamentals in the near term.
From the valuation point of view, with a forward 12-month price-to-earnings ratio of 7.3X, below the industry average of 9.1X, the stock presents a potentially attractive valuation for investors seeking exposure to the housing industry. The company is also trading below the other industry players like KB Home (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kbh#NYSE">KBH</a>), PulteGroup, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/phm#NYSE">PHM</a>) and NVR, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nvr#NYSE">NVR</a>).
<h3>Conclusion</h3>
MTH&#39;s strategy of capitalizing on the solid demand for entry-level and first-move-up homes will likely produce higher volume in the future, especially from digital communities, and help it gain market share across the region served.
Investors might consider adding this Zacks Rank #2 (Buy) stock to their portfolios, anticipating further growth bolstered by strong financial performance, valuation and expanding community count.
<h3>A Brief Review of Other Players</h3>
KBH currently carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 18.4%, on average. Shares of KBH have gained 29.6% in the past year.
The Zacks Consensus Estimate for KBH&#39;s 2024 sales and earnings per share indicates a rise of 6.5% and 18.2%, respectively, from prior-year levels.
PulteGroup currently carries a Zacks Rank #2. PHM has a trailing four-quarter earnings surprise of 12.5%, on average. Shares of PHM have risen 34.3% in the past year.
The Zacks Consensus Estimate for PHM&#39;s 2024 sales and EPS indicates a rise of 7.9% and 10%, respectively, from prior-year levels.
NVR presently carries a Zacks Rank #2. NVR has a trailing four-quarter earnings surprise of 9.7%, on average. Shares of NVR have gained 19.4% in the past year.
The Zacks Consensus Estimate for NVR&#39;s 2024 sales and EPS indicates a rise of 8.6% and 6.6%, respectively, from the prior-year levels.
<a href="https://www.zacks.com/stock/news/2297980/here-s-why-investors-should-add-meritage-homes-mth-stock-now?cid=CS-BENZ-FT-analyst_blog|rank_focused-2297980">To read this article on Zacks.com click here.</a>

Here's Why Investors Should Add Meritage Homes Stock Now

Shares of homebuilders are trading lower in sympathy with Lennar, which fell after reporting Q2 earnings and issuing guidance.

Shares of homebuilders and building products companies are trading higher. Strength may be due to a drop in Treasury yields following soft May CPI data.

NVR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVR#NYSE">NVR</a>) has outperformed the market over the past 10 years by 10.35% on an annualized basis producing an average annual return of 20.76%. Currently, NVR has a market capitalization of $23.89 billion. 
Buying $100 In NVR: If an investor had bought $100 of NVR stock 10 years ago, it would be worth $659.04 today based on a price of $7627.32 for NVR at the time of writing.
<h3>NVR's Performance Over Last 10 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1717520418_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$100 Invested In NVR 10 Years Ago Would Be Worth This Much Today

NVR's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVR#NYSE">NVR</a>) short percent of float has fallen 4.52% since its last report. The company recently reported that it has 50 thousand shares sold short, which is 1.9% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.97 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>NVR Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1716911121_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for NVR has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing NVR's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, NVR's peer group average for short interest as a percentage of float is 5.52%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

How Is The Market Feeling About NVR?

NVR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVR#NYSE">NVR</a>) has outperformed the market over the past 15 years by 7.69% on an annualized basis producing an average annual return of 20.14%. Currently, NVR has a market capitalization of $24.02 billion. 
Buying $1000 In NVR: If an investor had bought $1000 of NVR stock 15 years ago, it would be worth $15,681.51 today based on a price of $7669.00 for NVR at the time of writing.
<h3>NVR's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1716222618_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

If You Invested $1000 In This Stock 15 Years Ago, You Would Have $16,000 Today

Shares of homebuilders are trading higher amid overall market strength following April CPI data.

These are the mid-caps that could perform best during 'downturn' regimes – BofA

KB Home's (KBH) long-term prospects appear promising with continuous portfolio expansion and growing demand. So, should you invest in this stock following its earnings release? Read more to find out KB Home (<a href="https://stocknews.com/stock/KBH/">KBH</a>), a leading homebuilding company that builds and sells various homes, is set to report its financial results for the third quarter, which ended August 31, 2024, after the market close on September 24, 2024. Street expects the company's revenue and EPS for the third quarter to grow 8.9% and 15% year-over-year to $1.73 billion and $2.07, respectively.
During the last reported quarter, KBH's net orders increased by 2% to 3,997, and the net order value grew by 7% to $2.03 billion. Further, its monthly net orders per community increased to 5.5 from 5.2. Also, the company expects its ending community count in the range of 250 to 255 over the full year 2024.
KB Home offers affordable housing facilities and focuses on providing personalized, spacious, new homes and family-friendly amenities. During the second quarter, KBH opened multiple new communities to cater to the diverse demands of its customers. These communities include Rhythm, Farmlore Villas, Overlook Ranch, Catania at Citrine, and Enclave.
Further, amid interest rate cuts, coupled with slowing inflation, more and more individuals are interested in purchasing houses, resulting in strong growth for the homebuilding industry. The US residential construction market is expected to grow at a <a href="https://www.mordorintelligence.com/industry-reports/us-residential-construction-market">CAGR of 3%</a>, driven by affordable housing trends.
Regarding the second quarter results, Jerey Mezger, Chairman and Chief Executive Officer of the company, commented, "Buyers remained resilient in their desire for homeownership despite the volatility in mortgage interest rates."
He added, "Our pace of monthly net orders per community was one of our highest second quarter levels in many years, which we believe reflected the compelling, personalized choice that our Built to Order model offers to meet each buyer's lifestyle and budget."
Shares of KBH have gained 29.4% over the past six months and 79.6% over the past year to close its last trading session at $86.75.
Let's look at factors that could influence KBH's performance in the upcoming months.
Mixed Financials
For the second quarter that ended May 31, 2024, KBH's total revenues decreased 3.1% year-over-year to $1.71 billion. Also, its <a href="https://www.investopedia.com/terms/o/operatingincome.asp">operating income</a> declined 6.9% from the year-ago value to $188.18 million. Its total pretax income of $221.12 million reflects growth of 2.9% from the prior-year quarter.
Furthermore, the company's net income and EPS came in at $168.42 million and $2.15, indicating increases of 2.4% and 10.8% from the prior year's quarter, respectively. As of May 31, 2024, KBH's total assets stood at $6.81 billion, compared to $6.65 billion as of November 30, 2023.
According to the company's guidance for the full year 2024, KBH expects its housing revenues to range from $6.70 billion to $6.90 billion. Its average selling price is expected to be between $485,000 and $495,000. Also, the company expects homebuilding operating income as a percentage of revenues between 11% and 11.4%.
Solid Historical Growth
KBH's revenue grew at a CAGR of 10.5% over the past three years, while its EBITDA improved at a CAGR of 11.9%. Its EBIT increased at a CAGR of 12% over the same period, while the company's net income and EPS grew at respective CAGRs of 12.6% and 19.2% over the same time frame.
Further, the company's tangible book value and total assets have increased at a CAGR of 11.4% and 6.6% over the past three years, respectively.
Favorable Analyst Estimates
Analysts expect KBH's revenue for the third quarter (ending August 2024) to come in at $1.73 billion, indicating an increase of 8.9% year-over-year. The consensus EPS estimate of $2.07 for the same period reflects a 15% year-over-year improvement. Moreover, the company has surpassed the consensus revenue and EPS estimates in each of the trailing four quarters.
For the fiscal year (ending November 2024), the company's revenue and EPS are anticipated to grow 6.5% and 19.7% year-over-year to $6.83 billion and $8.41, respectively. In addition, Street expects its revenue and EPS for the fiscal year 2025 to grow 4.8% and 6.7% from the prior year to $7.16 billion and $8.97, respectively.
Mixed Profitability
KBH's trailing-12-month EBIT margin of 11.76% is 50.7% higher than the 7.81% industry average. However, its trailing-12-month gross profit margin of 21.89% is 41.1% lower than the industry average of 37.19%. And the stock's trailing-12-month levered FCF margin of 4.94% is lower than the industry average of 5.25%.
Furthermore, the stock's ROCE, ROTC, and ROTA of 15.54%, 8.46%, and 8.92% are favorable compared to the 11.32%, 6.08%, and 4.12% industry average, respectively.
Lower Valuation
In terms of forward non-GAAP P/E, KBH is currently trading at 10.31x, 37.2% lower than the industry average of 16.41x. Also, the stock's forward EV/Sales and Price/Sales of 1.11x and 0.96x are considerably lower than the industry average of 1.25x and 0.92x, respectively.
Additionally, the stock's forward EV/EBITDA and Price/Book of 7.70x and 1.57x are 22.8% and 38.2% lower than the industry averages of 9.98x and 2.54x, respectively.
POWR Ratings Reflect Uncertainty
KBH's mixed fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of C, translating to a Neutral in our proprietary system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. KBH has a B grade for Value, justified by its lower-than-industry valuation.
However, the stock has a C grade for Growth, in sync with its mixed performance in the last reported quarter. It also has a D grade for Stability, consistent with its 5-year beta of 1.81.
KBH is ranked #15 among the 23 stocks in the <a href="https://stocknews.com/category/homebuilders/">Homebuilders</a> industry.
Beyond what I have stated above, we have also given KBH grades for Sentiment, Momentum, and Quality. Get access to all the KBH ratings <a href="https://stocknews.com/stock/KBH/">here</a>.
Bottom Line
KBH is set to report its third quarter earnings during late September. The company's long-term prospects appear promising, driven by its expanding product offerings, strategic investments, and solid order growth.
Despite solid historical growth and lower valuation, KB Home grapples with declining revenue and operating income.
Given KBH's mixed financial results and profitability, waiting for a better entry point in this stock seems prudent.
Stocks to Consider Instead of KB Home (KBH)
Given its near-term uncertain prospects, the odds of KBH outperforming in the weeks and months ahead are compromised. However, there are many industry peers with much more impressive POWR Ratings. So, consider these A (Strong Buy) or B (Buy) stocks from the <a href="https://stocknews.com/category/homebuilders/">Homebuilders</a> industry instead:
M/I Homes, Inc. (<a href="https://stocknews.com/stock/MHO/">MHO</a>)
NVR Inc. (<a href="https://stocknews.com/stock/NVR/">NVR</a>)
PulteGroup Inc. (<a href="https://stocknews.com/stock/PHM/">PHM</a>)
For exploring more A and B-rated homebuilders stocks, <a href="https://stocknews.com/category/homebuilders/">click here</a>.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
<a href="https://report.stocknews.com/free-report/10-stocks-to-sell/?formplacement=artbotad_10sell">10 Stocks to SELL NOW! &gt;</a>

<hr />
KBH shares were trading at $86.82 per share on Wednesday afternoon, up $0.07 (+0.08%). Year-to-date, KBH has gained 40.43%, versus a 19.28% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/kbh-mho-nvr-phm-can-kb-home-outperform-as-demand-for-affordable-housing-grows/>Can KB Home Outperform as Demand for Affordable Housing Grows?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Can KB Home Outperform as Demand for Affordable Housing Grows?

The Federal Reserve is set to cut interest rates for the first time in four years. And there's one sector that is about to soar even higher … homebuilders.

Fed's First Rate Cut In Four Years Could Propel This Sector To New Heights

High But Declining Rates Set NVR Up For Success

SA Chart: Which sector will benefit the most from interest rate cuts?

Hartford MidCap Fund Q2 2024 Commentary

NAIL: Top 10 Holdings Remain Attractively Valued Relative To The S&P 500

The construction market is thriving, driven by its rising demand and shifting demographics. Thus, investors could consider buying leading construction stocks PulteGroup (PHM), NVR, Inc. (NVR), and Tri Pointe Homes (TPH) for solid gains. Keep on reading… With increasing population levels, urbanization, and shifting demographics boosting demand for new housing, the construction sector is expanding robustly. Additionally, a growing desire for modern, energy-efficient homes is growing, further accelerating the sector's expansion.
Therefore, with the industry's tailwinds, it could be wise to invest in fundamentally strong construction stocks like PulteGroup, Inc. (<a href="https://stocknews.com/stock/PHM/">PHM</a>), NVR, Inc. (<a href="https://stocknews.com/stock/NVR/">NVR</a>), and Tri Pointe Homes, Inc. (<a href="https://stocknews.com/stock/TPH/">TPH</a>) amid rising housing demand.
The construction sector is poised to benefit significantly from current market dynamics. With mortgage levels dropping to their <a href="https://www.forbes.com/advisor/mortgages/mortgage-rates/">lowest in nearly 15 months</a>, the demand for housing has been on the rise. Additionally, despite high interest rates, the Federal Reserve's interest rate cut last month will further boost the industry's growth prospects.
That said, privately-owned housing completions in July reached an annual rate of 1,529,000, marking <a href="https://www.census.gov/construction/nrc/pdf/newresconst.pdf">a 13.8% increase</a> from July 2023. Single-family housing completions were at a rate of 1,054,000, up 0.5% from the revised June rate of 1,049,000.
According to Statista, the residential real estate market in the United States is projected to reach a value of <a href="https://www.statista.com/outlook/fmo/real-estate/residential-real-estate/united-states">$106.70 trillion by 2024</a>. This projection shows a steady annual growth rate of 3.6% from 2024 to 2029, with an anticipated market volume of $127.40 trillion by 2029.
Considering all these factors, let us discuss the fundamentals of three <a href="https://stocknews.com/category/homebuilders/">Homebuilders</a> stocks, starting with number 3.
Stock #3: PulteGroup, Inc. (<a href="https://stocknews.com/stock/PHM/">PHM</a>)
PHM engages in the homebuilding business in the United States. It acquires and develops land primarily for residential purposes and constructs housing on such land. The company also offers various home designs under the Centex, Pulte Homes, Del Webb, DiVosta Homes, American West, and John Wieland Homes and Neighborhoods brand names.
On September 4, 2024, PHM announced a quarterly cash dividend of $0.20 per share, payable on October 2, 2024, to shareholders of record as of September 17, 2024.
On July 9, 2024, PHM announced the pre-sale of Deep Creek at Jordanelle Ridge, its first Utah community in over 20 years. Located in Heber City, it offers outdoor living with city conveniences, featuring eight home designs, along with upcoming townhomes and amenities.
PHM's total revenues for the fiscal second quarter that ended on June 30, 2024, increased 9.8% year-over-year to $4.60 billion. The company's <a href="https://www.investopedia.com/terms/n/netincome.asp">net income</a> came in at $809.13 million, representing a 12.3% year-over-increase, while its EPS grew 19.3% over the prior-year quarter to $3.83.
Street expects PHM's revenue for the quarter ending September 2024 to increase 7.1% year-over-year to $4.29 billion. Its EPS for the same quarter is expected to increase 10.1% year-over-year to $3.19. It surpassed the consensus EPS estimates in each of the trailing four quarters.
Over the past year, the stock has gained 42.3% to close the last trading session at $142.97.
PHM's positive outlook is reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. It has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
It is ranked #5 out of 23 stocks in the <a href="https://stocknews.com/category/homebuilders/">Homebuilders</a> industry. PHM has an A grade for Momentum and a B for Quality.
To access PHM's grades for Growth, Sentiment, Value, and Stability, <a href="https://stocknews.com/stock/PHM/">click here</a>.
Stock #2: NVR, Inc. (<a href="https://stocknews.com/stock/NVR/">NVR</a>)
NVR is a homebuilder in the United States, operating through its 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.
On April 25, NVR announced the signing of an agreement with La Cité Development, a leading real estate development corporation, to add 180 units of single-family homes to a large-scale redevelopment of 32.94 acres in Poppleton, West Baltimore, for approximately $800 million.
For the fiscal second quarter ended June 30, 2024, NVR's revenue increased 11.6% year-over-year to $2.55 billion, and its operating income was $495.25 million, up 12.2% from the year-ago value. Its net income was $400.90 million. Additionally, the company's EPS rose 3.6% from the prior-year quarter to $120.69.
Analysts expect NVR's revenue and EPS for the quarter ending September 2024 to increase by 7.1% and 5% year-over-year to $2.69 billion and $131.52, respectively. NVR surpassed Street EPS estimates in three of the trailing four quarters.
Over the past nine months, the stock has gained 38.7% to close the last trading session at $9,636.
NVR's solid prospects are reflected in its POWR Ratings. It has an overall rating of B, equating to a Buy in our proprietary rating system.
It has an A grade for Momentum and a B for Sentiment and Quality. It is ranked #4 in the Homebuilders industry.
<a href="https://stocknews.com/stock/NVR/">Click here</a> to see NVR's Growth, Value, and Stability ratings.
Stock #1: Tri Pointe Homes, Inc. (<a href="https://stocknews.com/stock/TPH/">TPH</a>)
TPH specializes in the construction and sale of single-family attached and detached homes. It sells its homes through its sales representatives and third-party brokers under six regional brands: Maracay, Pardee Homes, Quadrant Homes, Trendmaker Homes, Winchester Homes, and TRI Pointe Homes.
On September 11, TPH unveiled Alterra, a 62-home neighborhood located in Newcastle, Washington, where Eastside homebuyers will soon have the opportunity to purchase homes. With newer portfolios that are changing with ever-evolving customer preferences, TPH is staying on top of the homebuilder's industry and ensuring a stable growth prospect.
For its fiscal second quarter that ended June 30, 2024, TPH's total revenues increased 37.6% year-over-year to $1.14 billion. Its net income available to common stockholders came in at $118 million or $1.25 per share, indicating increases of 94.3% and 108.3% year-over-year, respectively. Additionally, the company's adjusted EBITDA came in at $216 million, increasing 66.2% year-over-year.
Street expects TPH's revenue and EPS for the fiscal third quarter ending September 2024 to increase by 27.3% and 41.7% year-over-year to $1.05 billion and $1.08, respectively. Additionally, it surpassed the EPS and revenue estimates in each of its trailing four quarters, which is excellent.
Over the past nine months, the stock has gained 31.3% to close the last trading session at $44.83.
It's no surprise that TPH has an overall rating of B, which equates to Buy in our proprietary rating system. It has an A grade for Momentum and a B for Value, Growth, and Sentiment. Out of 23 stocks in the same industry, it is ranked #3.
In addition to the POWR Ratings we've stated above, we also have TPH's ratings for Stability and Quality. Get all TPH ratings <a href="https://stocknews.com/stock/TPH/">here</a>.
What To Do Next?
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<hr><div style="clear:both;"></div> <h2>About the Author: Anushka Dutta</h2> <img src='https:/wp-content/uploads/2021/08/Anushka-Dutta_Headshot_3.jpg' style="float:left; padding:5px;width:125px;">Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research.<a href="https://stocknews.com/authors/?author=anushka-dutta">More...</a>The post <a href=https://stocknews.com/news/nvr-phm-tph-3-construction-stocks-to-buy-for-the-housing-market-surge/>3 Construction Stocks to Buy for the Housing Market Surge</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Construction Stocks to Buy for the Housing Market Surge

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Press Releases

NVR, INC. ANNOUNCES FOUNDER DWIGHT C. SCHAR AWARDED LIFETIME ACHIEVEMENT AWARD

NVR, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR RESULTS

NVR, INC. ANNOUNCES SHARE REPURCHASE AUTHORIZATION

United Homes Group Announces Board of Directors Update

NVR, INC. ANNOUNCES FIRST QUARTER RESULTS

La Cité Development Signs Agreement with NVR Ryan Homes for Large-Scale Single-Family Home Ownership Development in West Baltimore

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